Avid Technology Acquired by STG for $1.4 Billion In Cash

Avid STG

We’ve been hearing that Avid is ripe for sale for some time, as they have had financial trouble for many years. Today that sale has happened.

How will this affect Avid Media Composer editors and Pro Tools users? Good question, as the announcement left out a lot of information on the future of all the components that Avid Technology has. Let’s not forget shared storage systems, Audio hardware, Control Surfaces, Graphics, Ingest, and Playback. Yes, Avid Technology has a lot of products.

The Deal

The announcement states that under the terms of the agreement, Avid stockholders will receive $27.05 in cash for each share of Avid common stock. The cash purchase price represents a premium of 32.1% over the Company’s unaffected closing share price on May 23, 2023, the last full trading day prior to media speculation regarding a potential sale of the Company.

The transaction was unanimously approved by Avid’s Board of Directors and is expected to close during the fourth quarter of 2023, subject to Avid stockholder approval, regulatory approvals and other customary closing conditions. The transaction will be financed through a combination of equity and debt financing and is not subject to a financing condition. Upon completion of the transaction, Avid will become a privately-held company, and its common stock will no longer be traded on Nasdaq.

Since our founding over 30 years ago, Avid has delivered technology that enables individuals and enterprises who create media for a living to make, manage and monetize today’s most celebrated video and audio content across the globe. We are pleased to announce this transaction with STG, who share our conviction and excitement in delivering innovative technology solutions to address our customers’ creative and business needs, “STG’s expertise in the technology sector and significant financial and strategic resources will help accelerate the achievement of our strategic vision, building on the momentum of our successful transformation achieved over the past several years. This transaction represents the start of an exciting new chapter for Avid, our customers, our partners and our team members and is a testament to the importance of Avid and our solutions in powering the media and entertainment industry.”

Jeff Rosica, Avid’s Chief Executive Officer and President

About STG

STG is a private equity partner to market-leading companies in data, software, and analytics. The firm brings experience, flexibility, and resources to build strategic value and unlock the potential of innovative companies. Partnering to build customer-centric, market-winning portfolio companies, STG creates sustainable foundations for growth that bring value to existing and future stakeholders. The firm is dedicated to transforming and building outstanding technology companies in partnership with world-class management teams. STG’s expansive portfolio has consisted of more than 50 global companies. For more information, visit www.STG.com.

What’s to Come?

Screen Shot 2023 08 09 at 5 08 38 PM

When a company is sold, it’s a crap shoot on what will happen to it. It could be sold off again in parts or improved and made more competitive. I’m hoping for the latter. Avid Technology holds a lot of patents, and those have value. I think we will see these go up for sale if the new owner isn’t interested in keeping the company whole. We shall see in the coming months.

Are you an Avid/ProTools editor? Let us know your thoughts on the sale to STG.

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