By Josette Martel, July 28, 2005
Avid Technology, Inc. and Pinnacle Systems, Inc. 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.
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.
Avid Technology, Inc. has filed with the SEC a Registration
Statement on Form S-4 (Commission File No. 333-124475) in connection with the proposed acquisition of Pinnacle Systems, Inc. by Avid, and Avid and Pinnacle Systems, Inc. have filed with the SEC and mailed to their respective stockholders a Joint Proxy Statement/Prospectus in connection with the transaction on or about June 16, 2005.
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