Avid, the leading provider of high-end NLE software and hardware today announces that it intends to acquire Pinnacle Systems, Inc in a stock and cash transaction.

“Pinnacle’s consumer video business – which to date has shipped more than 10 million units -will form the basis for a new consumer video division at Avid, providing the company with an immediate avenue into that segment.”

On the professional end, “…the parties expect that Pinnacle’s award-winning professional products – such as the MediaStream broadcast playout server and the Deko on-air graphics system – will enhance Avid’s end-to-end broadcast production pipeline, which has helped Avid become a global leader in that industry.”

Here are the press releases on the Avid and Pinnacle sites.

With its Pinnacle Liquid Edition Pro product line, Pinnacle Systems, Inc provides advanced HDV editing software at affordable pro-sumer prices. I believe that with Avid’s strength in the professional NLE arena, and Pinnacle’s consumer experience, competitors will have a force to be reckoned with. Avid’s name alone will give consumer’s further impetus to buy the already popular Studio line of software.

Avid provides its Avid Free DV product as a feature reduced version of its Avid Xpress DV product to penetrate the consumer level market. Xpress DV, currently is only for DV editing, HDV is available on PC in its Avid Xpress Pro HD product, but the price is significantly more than HDV editing solutions from Pinnacle.

Consolidation in the NLE market is inevitable, and this acquisition will will bring the Avid name into more homes, instead of just the work-place.

Rm.