Avid has announced that its acquisition of old video technology rival Pinnacle has been completed. This follows the European Commission's clearance of the move last week.
“The completion of this acquisition immediately strengthens Avid’s ability to serve the industries that make, manage and move media,” said David Krall, Avid’s president and CEO, quoting the company's tagline. “Broadcasters who are transitioning from analogue to all-digital production will now have immediate access to a wider selection of capabilities from Avid, and in the months ahead, they’ll experience tighter interoperability between Pinnacle’s broadcast products and Avid’s end-to-end all-digital production environments."
Pinnacle's broadcast offerings will become part of Avid's Video division. It's Liquid line of editing products, itself bought from Fast back in 2001 and which Avid has said it will continue to develop, will be split between the Video division and Avid's new Consumer division. This new division will continue to use the Pinnacle name, as it's aiming products such as Studio at consumers who may not have even heard of Avid.
As part of the acquisition, Avid will issue around 6.2 million shares of stock and pay approximately $71.3 million in cash to Pinnacle shareholders and options holders. Pinnacle Systems shares have ceased trading and Pinnacle has been delisted from the NASDAQ market.