Macromedia, Inc. (Nasdaq: MACR) launched a new eBusiness Infrastructure strategy Thursday with a merger with Andromedia, and partnerships with BroadVision and USWeb/CKS.
Macromedia said its new eBusiness Infrastructure software will allow businesses to collaborate more efficiently, reduce time and resources to site deployment, and lower costs.
"As our developers for Dreamweaver, Flash and Shockwave have become more successful, they have needed a more complete solution to realize their vision," said Kevin Lynch, senior vice president and general manager for Macromedia in a company statement. He said the new combined software will allow cutomers to "build in business logic at the authoring level."
Shares of Macromedia, which have been on an upward spike since the company reported first quarter results in July, closed at 54 31/32 Wednesday, approaching their high of 55. USWeb/CKS (Nasdaq: USWB) closed at 31 5/16 Wednesday, and BroadVision, Inc. (Nasdaq: BVSN) closed at 161.
"Andromedia and Macromedia's products already complement one another and are used jointly by many of our customers,'' said Kent Godfrey, CEO of Andromedia, who added that the deal provided a "complete eBusiness Infrastructure" that would cut costs for businesses that are "tired of having to knit together a hodgepodge of point solutions from multiple vendors."
Andromedia is a privately held company based in San Francisco. Macromedia will acquire all of the outstanding stock of Andromedia in a stock for stock merger. Macromedia expects to issue about 5 million shares of stock in connection with the acquisition and incur one-time charges for the deal of up to $5 million in its fiscal third quarter.
Kent Godfrey, Andromedia's current chief executive, will join the senior management team at Macromedia where he will be responsible for strategic e-business initiatives.