Avid has been broadening its products to include Web-content management tools and server systems for the past three years, but the iKnowledge deal marks the first acquisition of assets the company has made in the area, said Tom Rosenstein, business development director for Avid.
"We shifted our company's goals to be more of a solutions provider," Rosenstein said.
iKnowledge's software applications will let Avid offer customers the ability to simultaneously distribute digital content, such as digital audio or video, to Web sites and wireless gadgets via broadband or wireless channels without having to reconstruct the work.
"Our Web-content management allows our customers (studios and broadcasters) to send digital content to Web sites, wireless phones and PDAs," Rosenstein said.
Terms of the deal were not disclosed. But Rosenstein noted it was a small acquisition that involved seven employees, software applications and a building in Canada. Avid did not buy the iKnowledge name or assume the company's liabilities.
"This acquisition was not material to our short-term revenues," said Rosenstein. Wall Street analysts have estimated that Avid is on track to generate $110 million in revenue during the current quarter.
Avid, based in Tewksbury, Mass., has a work force of 1,550.
Shares of the company closed down 12 cents, or nearly 1 percent, to end the day at $13.24.