Adobe's Macromedia takeover clears final hurdle

U.S. regulators give green light to the purchase, which could result in some software packages being dumped.

Adobe Systems' multibillion-dollar takeover of rival software developer Macromedia has received regulatory clearance and is expected to be completed Saturday.

Adobe announced late Thursday that it and Macromedia have either received or been notified they will receive all regulatory clearances necessary to complete the acquisition, which will cost Adobe $3.4 billion.

This follows an investigation by the U.S. Justice Department, which requested additional information on both companies' Web-authoring, design and vector graphics illustration products.

Adobe also said it would discuss the combined company's fiscal 2006 outlook on Dec. 15.

The takeover was announced in April, when Adobe CEO Bruce Chizen promised to yield cost savings. This sparked speculation that some software applications could be axed once it was completed.

In the graphics market, Adobe's Photoshop and Illustrator are the market leaders ahead of Macromedia's competing Fireworks and Freehand. In Web design, Macromedia has the established DreamWeaver against Adobe's more recent GoLive product.

Graeme Wearden of ZDNet UK reported from London.

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