Adobe to comply with DoJ

Adobe Systems said last week that it had received a request for additional documentary materials from the US Department of Justice (DoJ) in connection with its proposed acquisition of Macromedia (CRN, 26 April).

This second request is limited to information about the companies’ products in the areas of web authoring and design, and vector graphics illustration, according to Adobe.

The DoJ demand will extend the waiting period imposed by the Hart-Scott-Rodino Antitrust Improvements Act of 1976 until 30 days after Adobe and Macromedia have complied. Both companies are in the process of gathering the requested information and have promised to work closely with the DoJ as it conducts its review.

Adobe and Macromedia expect to hold shareholder meetings to approve the acquisition in September 2005 and anticipate the transaction will close by the end of 2005.

“Due to the absence of estimates of the acquisition-related restructuring costs, as well as the final allocation of the purchase price between goodwill… and equity-based compensation expenses related to SFAS 23R, Adobe is unable to provide GAAP estimates on future earnings,” it stated.

Both firms have said there would be benefits for their channels following the merger, but have not given details.