Adobe Systems have announced plans to buy rival software firm Macromedia for about 3.4 billion dollars in shares.

Under the terms, Macromedia stockholders will receive 0.69 shares of Adobe common stock for every share of Macromedia common stock in a tax-free exchange.

When the deal has been completed, Macromedia stockholders will own about 18 percent of the combined company based on the Friday closing price, the announcement said. Based on

The San Francisco-based Macromedia claims the top spot in the market for Web site design, with about one third of the market, followed by Microsoft. It also produces the Flash and Shockwave software used in many games and Internet applications.

By: DocMemory
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