SAN FRANCISCO -- Authorware Inc. and MacroMind-Paracomp, both leading suppliers of multimedia software for personal computers, said Tuesday they have agreed to merge.
The privately held companies did not disclose the financial terms of the deal, saying it will be accounted for as a pooling of interests when it is completed in April.
Both will have an equal interest in the merged company.
Multimedia software, which first came into the spotlight four years ago, is able to combine animation, high-fidelity sound and video on personal computers, but it is not widely used because of its relatively complicated instructions.
Analysts estimate it has a current market of about $200 million annually, with Macromind holding about 12 percent and Authorware taking in about 8 percent. The combination of the two companies may give the merged entity enough pull to launch a public stock offering.
Macromind, of San Francisco, merged last July with Paracomp, a producer of animation and modeling software.
Tim Mott, president and chief executive officer of MacroMind, will become chairman and chief executive officer of the new company. John C. 'Bud' Colligan, president and chief executive officer of Authorware, of Redwood City, Calif., will be the new company's president and chief operating officer.
The new company's name will be announced when the merger is completed.
'Multimedia is one of the most exciting opportunities in computing and consumer electronics today,' Mott said. 'However, there has been a strong need for a software company with the critical mass to establish multimedia as a predominant form of communication, entertainment and education.'
