Adobe Systems Inc. announced that it will proceed with its plans to acquire Macromedia Inc., which earlier this week disclosed a restatement of its financials for the past five years.
“As part of the acquisition process, we performed a customary due-diligence effort and understood Macromedia’s financial condition in moving ahead with the transaction,” wrote Adobe chief financial officer Murray Demo in an E-mail statement, according to the Associated Press.
Last month, Adobe — the San Jose, California-based software developer best known for PDF documents — agreed to buy San Francisco-based Macromedia, which makes Flash and other multimedia software, for $3.4 billion in an all-stock deal.
On Tuesday, Macromedia reported a $6.1 million understatement of a liability related to the accrued benefit of an employee sabbatical-leave program, which the company adopted in 1999. As a result, the company will restate its results from that year through fiscal 2004.
The company added that it will restate its financials by $2.1 million for the past three years to adjust its income-tax provision for foreign tax bills.