Under terms of the agreement, Pinnacle shareholders will receive .0869 shares of Avid stock and $1 in cash for each Pinnacle share held. At closing, it is expected that Avid will issue about 6.2 million shares and pay $71.3 million in cash. Pinnacleis shareholders will own about 15% of the combined company after completion. Both companiesi shareholders must approve the transaction.
"By acquiring Pinnacleis consumer video business, Avid will be able to tap into the next generation of video editors while they are still learning their craft," said Avid president and CEO David Krall in a prepared statement. "This creates a very large potential customer base for Avidis future. At the same time, we believe that Pinnacleis professional broadcast offerings will fit seamlessly with Avidis business, extending our end-to-end broadcast solutions with servers and on-air graphics products."