Pinnacle specializes in high-end video software and hardware. Hamburg-based Steinberg's Cubase is the industry standard sequencing software.
The companies expect to close the transaction in early January 2003 and have agreed on a total purchase price of approximately $24 million, consisting of $8.2 million in cash and $15.8 million of Pinnacle Systems common stock. Pinnacle will acquire all products, software, and intellectual property rights, along with all other assets and liabilities of the company.
“Our customers and products will benefit greatly from the combined resources of the two companies, and we look forward to bringing audio production expertise to the award-winning Pinnacle Systems’ product lines,” said Manfred Rürup, President of Steinberg Media Technologies AG.
The move follows the acquisition of Emagic by Apple earlier this year. Apple discontinued further development of the Windows version of Emagic Logic in September, but will continue to issue bug fixes and honour support contracts.
There's heated discussion on Cubase user boards, reports The Register. One veteran Cubase developer said that “the assets of the company are the developers and the philosophy”, and he vowed that “that continuity would be honoured”.