FUTURISTIC GROOVES

Combining two of the largest makers of software for creating and delivering digital content, Adobe Systems Inc. said Monday it will acquire Macromedia Inc. in an all-stock transaction valued at approximately $3.4 billion.

Both companies said the long-rumored acquisition was not to consolidate and cut costs but to help Adobe expand into new markets, particularly in the area of providing content to mobile phones and other handheld devices

“This is not a consolidation play. This is all about growth,” said Bruce Chizen, Adobe’s chief executive. “We’re doing this because we believe the combined offerings will be even more compelling to our customers given the challenges they’re going to face in trying to communicate information in this very complex environment.”

Neither company would speculate Monday on actual product plans after the deal is closed.

There is some product overlap, including Adobe Illustrator and Macromedia Freehand in graphics design, Adobe GoLive and Dreamweaver for Web page creation, and Photoshop and Macromedia Fireworks for working with photos and other graphics.

Under terms of the deal, approved by the companies’ boards of directors, Macromedia stockholders will receive 0.69 shares of Adobe common stock for every share of their Macromedia common stock.

That will result in Macromedia stockholders owning about 18 percent of the combined company when the deal closes.

Shares of Adobe lost $6.77, or 11 percent, to $53.89, in Monday morning trading on the Nasdaq Stock Market. Macromedia shares gained $2.76, or 8.3 percent, to $36.21.

The transaction, contingent upon the approval of regulators as well as the shareholders of both companies, is expected to be completed by the fall. The combined company will keep Adobe’s name and San Jose headquarters.

According to Adobe: The combination of Adobe and Macromedia will provide customers a more powerful set of solutions for creating, managing and delivering compelling content and experiences across multiple operating systems, devices and media. Together, the two companies will meet a wider set of customer needs and have a significantly greater opportunity to grow into new markets, particularly in the mobile and enterprise segments.