Pinnacle Systems Inc. decided it could reach its business pinnacle by being bought out by Avid Technology Inc. Now what’s the cash and stock deal worth? Approximately $462 million!!

Pinnacle, co-founded by Ajay Chopra in 1986, provides digital video creation, storage, streaming and viewing software for broadcasters, video professionals and consumers. The Nasdaq listed Pinnacle is a $350 million company by market capitalization. Headquartered in Mountain View, CA, Pinnacle has won eight Emmy Awards for its work in computer-based video productions.

“This deal makes sense for Pinnacle because it gives all our stakeholders an avenue to engage with the merged company that is destined to be an important player in the industry,” says Chopra. “Pinnacle’s professional products–such as MediaStream broadcast playout server and Deko on-air graphics system–will enhance Avid’s end-to-end broadcast production pipeline, which has helped Avid to become a global leader in that industry.

At the same time, Pinnacle’s consumer video business–which to date has shipped more than 10 million units–will form the basis for a new consumer video division at Avid, providing the company with an immediate avenue into that segment.”

Avid, headquartered in Tewksbury, MA, specializes in digital nonlinear media products for film, video, audio, animation, games and broadcast professionals. The company has won Oscar, Grammy and Emmy awards for its products.

“Building Pinnacle from a start-up to a world class company with over $300 million in revenues has been a terrific experience for me personally. I am delighted that the unique expertise and value we have created over these years will continue to serve our customers through the new merged entity,” continues Chopra. Chopra led Pinnacle into the desktop video business in 1993, a move that led to the company's public offering in 1994.