Adobe Systems, the creator of Acrobat and the ubiquitous portable document format, PDF, said it would buy Macromedia Inc. for $3.4 billion in stock to expand on the market of video, documents and other media computer distribution.

Under the terms, Macromedia holders would receive 0.69 Adobe share for each Macromedia share, the companies said in a joint statement. The deal shows a premium of 25% to Macromedia’s $33.45 share price on Nasdaq Stock Market on Friday.

The merger is «all about the growth,» according to Adobe’s chief executive Bruce Chizen who is expected to hold the post of CEO in the combined company. The CEO of Macromedia Steven Elop will hold a post of Adobe’s president of world-wide field operations.

Adobe became famous for its Adobe Reader software which is now installed on nearly every PC. Macromedia is mostly famous for its Flash and Shockwave software, used to deliver video, animation and Web conferencing.