Pinnacle Systems Acquires Puffin Designs

Expanding its content creation expertise, Pinnacle Systems (Mountain View, CA) is acquiring Puffin Designs, a Sausalito, CA-based developer of special effects software in an all stock purchase valued at $13 million.

Pinnacle plans to integrate Puffin's software tools in its video editing and effects systems for broadcast, film and streaming media. Puffin specializes in software for real-time paint, rotoscoping and visual motion tracking.

A Pinnacle spokesperson confirmed that no layoffs are planned and that Puffin's Sausalito headquarters will remain open. Puffin has approximately 40 employees. Scott Squire, founder of Puffin Designs, will join Pinnacle as Creative Visionary – a newly created position.

"Pinnacle Systems has long admired Puffin Designs technology and talented team," says Mark Sanders, president and CEO of Pinnacle. "This acquisition will allow Pinnacle Systems to leverage its already strong position in creation and distribution of rich media content over broadcast networks and the Internet. This acquisition is part of our strategy to build a low-cost, high-quality infrastructure that will be essential for the next technological wave as broadband Internet connectivity enables full quality video on the web."

Under the terms of the stock purchase agreement, Pinnacle will issues approximately 360,000 shares of Pinnacle Systems common stock in exchange for all outstanding shares of Puffin Designs.

Edited by Tom Butts