Avid, Digidesign merge

Avid Technology of Tewksbury, Massachusetts, has announced an agreement to merge with California-based Digidesign through an exchange of shares.

Digidesign shareholders will receive 0.79 shares of Avid common stock for each share of Digidesign common stock.

Expected to be finalized within the next two or three months, the merger is still subject to approval by the shareholders of both companies.

Avid specializes in digital video, while Digidesign's expertise is digital audio. The merger would bring Avid closer to its goal of providing integrated all-digital processes for media creation and distribution.

Avid reported record revenues of $54 million for the third quarter of 1994, an increase of 74% over 1993 third-quarter revenues of $31 million.

The profits are due in part to penetration of new markets including professional on-line post and television broadcast news.