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BMC completes IAM suite with OpenNetwork purchase







BMC completes IAM suite with OpenNetwork
purchase

BMC completes IAM suite with OpenNetwork
purchase
03/29/2005 11:26 AM

Computer Weekly Mar 29 2005 3:05PM GMT




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BMC completes IAM suite with OpenNetwork purchase

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BMC snags OpenNetwork for $18m


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Macromedia shareholders will receive 69% a share of Adobe for each one they hold, which represents approx. $41.86 per share at Adobe's closing price of $60.66. The figure represents a 25% premium on Macromedia's shares, which closed at $33.45 on Friday.

The deal, approved by both boards, is being described as a way of expanding both the companies. Bruce Chizen, Adobe CEO, described the purchase as being "all about growth," and explained that he expects the two companies together to grow faster than they would apart. “By combining our powerful development, authoring and collaboration software – along with the complementary functionality of PDF and Flash – Adobe has the opportunity to bring this vision to life with an industry-defining technology platform.” Although true, the deal reflects the increased competition both companies are facing in their respective markets.

Adobe and Macromedia are respected leaders in their fields, and a tie up in the industry has long been expected by analysts. Adobe is a leader in the imaging and document management field, and Macromedia is a leader of web technologies like Flash. The deal has been welcomed by industry watchers.

Although details are somewhat limited, the two companies announced that they believed the purchase would give cost savings. However, as recent history with purchases such HP and Compaq would tell, there are serious difficulties and costs involved in integrating two companies.

Chizen will stay in his position as CEO of Adobe, whilst Stephen Elop, President and CEO of Macromedia, will become president of Worldwide Field Operations in the new combined company. The deal is expected to be completed later this year.

View: Adobe Press Release | Macromedia Press Release

Read full story...

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Grok Description matches for BMC completes IAM suite with OpenNetwork purchase
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BMC completes IAM suite with OpenNetwork purchase

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