Avid Technology Inc. on Monday announced plans to acquire Pinnacle Systems Inc. in a deal valued at US$462 million in cash and stock transfer. Pinnacle makes video editing products for the Windows platform, with an emphasis on consumer video products. The companies expect to close the deal pending shareholder and regulatory approval in the second or third calendar quarters of 2005. Avid said that its acquisition of Pinnacle will serve as the basis of a new consumer video division at Avid.
“… by acquiring Pinnacle’s consumer video business, Avid will be able to tap into the next generation of video editors while they are still learning their craft. This creates a very large potential customer base for Avid’s future,” said Avid president and CEO David Krall.