Digital Video, Audio Firms Combine
NEW YORK (AP) _ Avid Technology Inc., a maker of equipment that converts photography and movies for digital transmission, said Tuesday it would acquire Digidesign Inc., which specializes in digital audio software, in a stock swap worth $205 million.
Shareholders of Digidesign will receive 0.79 share of Avid stock for each Digidesign share. Avid will issue 6.1 million new shares for the transaction.
Avid’s stock closed down $1 at $33.50 on the Nasdaq stock market Tuesday. Digidesign stock was up $1 for $23.50, also on Nasdaq.
Avid is Digidesign’s largest customer. Avid’s customers are film production and media companies. Avid is based in Tewksbury, Mass. Digidesign is based in Menlo Park, Calif.