Adobe and Macromedia Receive Request for Additional Information from the DOJ
Press release from the issuing company
SAN JOSE, Calif.--July 11, 2005-- Adobe Systems Incorporated and Macromedia, Inc. today announced that they have received a Request for Additional Information and Documentary Materials (a "second request") from the Department of Justice (DOJ) in connection with Adobe's pending acquisition of Macromedia. The second request is limited to information about the companies' products in the areas of web authoring/design and vector graphics illustration.
The second request will extend the waiting period imposed by the Hart-Scott-Rodino Antitrust Improvements Act of 1976 until 30 days after Adobe and Macromedia have substantially complied with the request. Adobe and Macromedia are in the process of gathering information to respond promptly to the second request and continue to work closely with the DOJ as it conducts its review.
The companies expect to hold meetings of their respective stockholders to approve the acquisition in September 2005 and still anticipate that the transaction will close in Fall 2005.
Adobe continues to believe the transaction will be break-even to slightly accretive to earnings in the first twelve months after closing on a non-GAAP basis. Adobe's target of break even-to-slightly accretive to earnings on a non-GAAP basis assumes no adverse impact from the loss of deferred revenue in the first twelve months following the close due to purchase accounting.
Due to the absence at this time of estimates of the acquisition-related restructuring costs as well as the final allocation of the purchase price between goodwill, in-process R&D, other intangibles and equity-based compensation expenses related to SFAS 23R, Adobe is currently unable to provide GAAP estimates on future earnings.
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