What is the agreement between Dazzle and Pinnacle Systems?
Pinnacle Systems has entered into a definitive agreement with SCM Microsystems to acquire certain assets of the Dazzle consumer video editing business. The parties expect to close this transaction in the first half of July 2003 and have agreed on a total purchase price of approximately $21.5 million payable in Pinnacle common stock, subject to certain adjustments. Why did Pinnacle Systems buy the Dazzle video editing product line? Acquiring the Dazzle video editing product line enables Pinnacle to increase its penetration of the consumer video editing market, especially in the United States. The Dazzle video products complement Pinnacle’s existing Studio product line for consumer video editing. For example, Dazzle had established a strong market position for external video capture devices for analog camcorder integration to a PC – whereas Pinnacle had focused more on internal capture cards and the Studio software application. Combining these two strong product lines under the Pinnacle
