Avid to buy Midiman

NEW YORK: Avid Technology Inc. said it has agreed to buy digital audio developer Midiman Inc. for $80 million in cash and 2 million Avid shares to boost its presence in the home studio market.

Avid, a digital media company, said the deal with Midiman, which does business as M-Audio, includes provisions for additional payments of $20 million and $25 million that would be payable as the company reaches certain financial milestones.

The deal, which Avid expects to close later this month, will add $20 million to Avid's 2004 revenue and increase pro forma earnings it said.

Avid said it expects third-quarter net earnings of 47 cents per share on revenue of $143.5 million, and fourth-quarter earnings of 51 cents per share on revenue of $162.5 million.

It forecast full year net earnings of $1.88 per share on revenue of $573 million.

It said it expects pro forma earnings per share of 52 cents in the third quarter, 60 cents in the fourth quarter and $2.04 for the full year.