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The company said that the merger will enable it to create a 'powerful software platform' based on Adobe's PDF technology and Macromedia Flash.

'The explosion of digital content, combined with the accelerating proliferation of mobile phones, wireless devices and the growth of broadband are transforming the way the world

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engages with information,' said Bruce Chizen, chief executive officer of Adobe. 'Adobe and Macromedia are at the centre of this trend, and together we will build on our combined heritage to redefine the way people and businesses communicate.'

Adobe immediately announced new software bundles combining the best of both parties: the Adobe Design Bundle that combines Adobe Creative Suite 2 Premium with Flash Professional 8 software; the Adobe Web Bundle that brings together Adobe Creative Suite 2 Premium and Studio 8; and the Adobe Video Bundle that delivers Adobe video solutions coupled with Flash Professional 8.

The Adobe Design Bundle and Web Bundle are available for purchase today and the Adobe Video Bundle is expected to ship in early 2006.

For more information and prices go to www.adobe.co.uk/products/bundles.