Avid Technology, Inc. (NASDAQ: AVID) and Pinnacle Systems, Inc. (NASDAQ: PCLE) have announced that the shareholders of both companies have approved proposals necessary to allow Avid's acquisition of Pinnacle to move forward. The closing of the transaction remains subject to approval by European regulators.
"We're looking forward to integrating Pinnacle into the Avid family, and having the shareholders of both companies on board brings us one step closer to putting our combined strategy into action," said David Krall, Avid's president and chief executive officer. "We're eager to complete the deal and begin capitalizing on the many opportunities that lie ahead in both the consumer and professional video industries."
On March 21, 2005, Avid and Pinnacle announced that Avid entered into a definitive agreement to acquire Pinnacle in a cash and stock transaction. Under the terms of the agreement, Pinnacle shareholders will receive .0869 shares of Avid stock and $1.00 in cash for each Pinnacle share. At closing, it is expected that Avid will issue approximately 6.2 million shares and pay $71 million in cash.