August 21, 1998 10:00 AM PDT
Autodesk to buy Discreet Logic
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The company's shares plunged more than 19 percent on the news in early trading, losing 6.3125 to 26.3125.
The buyout comes as the PC design software supplier reported a jump in second-quarter profits and revenues, excluding one-time charges. The company's most recent financial results were in line with analysts' expectations.
Under the terms of the acquisition, Autodesk will fold Discreet's operations into its new media division and increase its offerings. The deal is expected to close by year's end, subject to shareholder approval.
"This union will broaden our 3D product portfolio in the professional entertainment software arena," Autodesk chief executive Carol Bartz said in a statement.
The deal also calls for Autodesk to issue 0.525 shares of common stock for every share of Discreet. Autodesk closed today at 32.6250, up 0.1250 over yesterday, while Discreet jumped more than 17 percent to close at 16, up 2.3750.
The company posted net income of $9.1 million or 18 cents a share for its second quarter, compared with $17.8 million or 34 cents a share reported a year ago. Excluding one-time charges, the company would have posted earnings of $27.7 million, or 56 cents a share.
Autodesk's second-quarter revenues climbed to $186.6 million, up from $154.1 million a year ago.