Macromedia To Acquire Allaire
Macromedia Inc., creator of Flash software and parent to Shockwave.com, has announced that it will acquire Web content management company Allaire Corp. in a US$360 million cash and stock deal. Macromedia will exchange 0.2 shares of its stock plus $3 in cash for each share in Allaire. Macromedia CEO Rob Burgess will continue as CEO of the new combined firm, with Allaire's CTO Jeremy Allaire talking over the same role at Macromedia. The combined company will retain the Macromedia name. This announcement comes on the same day that Macromedia announced its third quarter earnings that outperformed analysts' expectations by 2 cents per share. The tech firm reported pro forma earnings of $16.2 million or 29 cents per diluted share versus $8.2 million or 15 cents a share a year ago. Macromedia hopes that Allaire's server and application development products will help make Macromedia's software more efficient, affordable and accessible. The deal should close within the next 90 days upon regulatory approval.