Pinnacle Systems Inc, the Mountain View, California-based video capture and editing software house, has agreed to acquire Truevision Inc, a supplier of videographics products for Windows PCs and the ApplePower Macintosh, for $14.5m in stock. Mark Sanders, chief executive officer of Pinnacle said he considered the deal important because Truevision had invested heavily in custom chip technology for next generation video editing capabilities that was scalable for high definition television (HDTV) applications. Pinnacle said it plans to issue 400,000 new shares in the deal, representing 4% of its exiting share capital. The deal will be accounted for as a purchase and is expected to close during the first calendar quarter of 1999.
