Deal to close before end of year
Personal computer engineering design software company Autodesk Inc. has agreed to acquire Canadian-based Discreet Logic in a stock deal worth more than half a billion dollars, the firms announced Thursday.
Discreet Logic, known for its advanced computer systems and software used in creation and editing of digital imagery for Hollywood and new media marketplaces, will become part of Autodesk’s new media division, called Kinetix, which produces PC-based digital tools for the creation of 3D content.
The two companies believe their newly merged product line will benefit customers by allowing them access to a single, integrated production pipeline, including the creation of 2D and 3D designs, as well as the development of complex editing and special effects.
Under the terms of the agreement, Autodesk will issue 0.525 shares of common stock for each outstanding share of Discreet Logic stock. Based on the August 19th closing price of Autodesk’s stock, the value of the transaction to Discreet Logic’s shareholders is approximately $520 million.
Subject to several conditions, including regulatory approvals and approval of the shareholders of both companies, the transaction is expected to close by the end of the year.
“With this acquisition, we are executing on our strategy to broaden our business and expand beyond the traditional design software category,” said Carol Bartz, Autodesk Chairman and CEO.
Discreet recently reported record revenues of $152 million for its fiscal year ended June 30, while revenues from Kinetix totaled $40 million for the same period.
Discreet’s 350 employees and its product families will be integrated with Autodesk’s Kinetix business unit. It will be known as Discreet, a division of Autodesk.