Macromedia - developers of a variety of Web-enabling technologies, including Shockwave, Flash and Dreamweaver - announced plans to merge with Cold Fusion developers Allaire in January this year. The deal is valued at $360 million and the company will continue to operate under the Macromedia name.
Under US anti-trust law, such mergers are subject to a waiting period before regulatory approval is granted. The Securities and Exchange Commission (SEC) has granted the two company's an early end to this wait, though the merger still awaits Allaire shareholder approval.
Benefits Rob Burgess, Macromedia chairman and CEO, said: "This merger brings together Macromedia's Web-content creation software with Allaire's application server and development solutions."
On the current economic conditions prevalent in the PC and Internet industries, he said: "While we are very confident in our product strategy and competitive position, the weakness in the overall economy is affecting the short term results of both companies."
Macromedia revealed that it expects to achieve revenues of $85-$90 million during the current quarter, including the incorporation of approximately ten days of Allaire's March quarter into Macromedia's revenues, assuming the merger closes on March 20.
The combined company is scheduled to announce its end of year results during the first week of May, 2001.