Adobe to acquire Macromedia

Adobe Systems today announced a definitive agreement to acquire Macromedia in an all-stock transaction valued at approximately $3.4bn (€2.6bn).

Under the terms of the agreement, which has been approved by both boards of directors, Macromedia stockholders will receive, at a fixed exchange ratio, 0.69 shares of Adobe common stock for every share of Macromedia common stock in a tax-free exchange.

Based on Adobe's and Macromedia's closing prices on Friday this represents a price of $41.86 per share of Macromedia common stock.

Upon the close of the transaction, Macromedia stockholders will own about 18% of the combined company.

Adobe employs 65 people in Ireland.