Pinnacle Systems Acquires Dazzle Consumer Video Editing

by News Editor
Published on May 17, 2004 12:00 AM



Pinnacle Systems has announced that it has entered an agreement to acquire the Dazzle home video editing division of SCM Microsystems. Dazzle products include lower end video capture cards and video editing solutions.

The Dazzle product line includes low end video editing solutions and capture cards for both Firewire and analog video editing. In an interview with CamcorderInfo.com Bob Wilson, Senior Vice President of Corporate Development at Pinnacle said ''We see a lot of complementary fits among the two product lines. Dazzle has tended to focus more on the value added consumer. We are really seeing the Dazzle product line be complementary and broadening the base of users.'' Wilson said that the Dazzle brand will be maintained.

According to the company, Pinnacle's Studio 8 video editing package is the leading consumer video editing software, with Dazzle coming in second. Wilson stated that he sees a long term future for their analog video capture and Firewire capture solutions despite the fact that most computers now include Firewire and more and more consumers are switching to non analog camcorders ''In the US the analog demand continues to be extraordinarily high, much higher than any of us expected it to be.''

As for Pinnacle's relationship with Canon where Canon includes Pinnacle software bundled in with many of it's consumer camcorders, Wilson stated ''We hope it continues to grow, we've had a very successful run with them.''

The companies expect to complete the transaction in July 2003 and have agreed on a purchase price of around $21.5 million of Pinnacle Systems stock.