Reprinted from a Pinnacle Systems press release:
Pinnacle Systems, Inc. (NASDAQ: PCLE) announced today that it has entered into a definitive agreement to acquire the Dazzle home video editing business from SCM Microsystems (NASDAQ: SCMM; Prime Standard: SMY), a leading provider of digital media and video solutions. The companies expect to close the transaction in July 2003 and have agreed on a total purchase price of approximately $21.5 million of Pinnacle Systems common stock. Pinnacle will acquire selected assets and liabilities, including all product rights, inventory, intellectual property, trade names and other rights related to the business. Pinnacle will account for this transaction as a purchase during the quarter in which the transaction closes, currently anticipated to be the first quarter of fiscal 2004 (quarter ending September 30, 2003). The transaction is expected to be slightly accretive in fiscal 2004 on a non GAAP* (pro-forma) basis. Please visit www.pinnaclesys.com for further details on Pinnacle’s acquisition.
J. Kim Fennell, president and CEO at Pinnacle Systems said, “This is a great move for Pinnacle that allows us to further extend our market share lead in an exciting market. Combining Pinnacle’s industry-leading Studio video editing products with Dazzle’s brand gives us a strong position that lets us bring a wider variety of products to our customers and be the obvious choice for home video editing.”
Robert Schneider, CEO of SCM Microsystems commented, “We are happy to have found a good home for the Dazzle home video editing business. Combining Dazzle and Pinnacle’s product line will benefit all customers and helps ensure continued development for new digital video solutions.”