Media editing software maker Avid Technology, the company that provided the hardware for movies like ‘Top Gun: Maverick’ and ‘Avatar: The Way of Water’, has been acquired by private equity firm Symphony Technology Group (STG) for nearly $1.4 billion, including debt.
As part of the deal, Avid shareholders will receive $27.05 per share in cash, the company said in a statement. The deal represents a 32.1 percent premium to the company’s closing share price on May 23 this year, the last full trading day prior to media speculation regarding a potential sale of the company.
Founded in 1987, Avid provides editing software and hardware primarily to the entertainment industries. Its products, which have been used in the production of blockbuster movies such as include Media Composer, MediaCentral and AirSpeed.
John P Wallace, Chairman of the Avid Board of Directors, said: “This transaction is the result of a comprehensive review of strategic alternatives for Avid. Upon closing, this transaction will deliver immediate, significant and certain value to our stockholders.”
Jeff Rosica, Avid’s Chief Executive Officer and President, added: “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.”
STG is a Palo Alto, California-based mid-market private equity firm focused on technology investments. It currently manages about $10 billion of assets and has invested in more than 50 companies in the technology industry.
William Chisholm, Managing Partner of STG, added: “STG has admired Avid’s heritage as a category creator and pioneer in the media and entertainment software market for many years. We are excited to partner with Jeff and the management team to build on the company’s history of delivering differentiated and innovative content creation and management software solutions.
“We look forward to leveraging our experience as software investors to accelerate Avid’s growth trajectory with a deep focus on technological innovation and by delivering enhanced value for customers.”
The transaction was unanimously approved by Avid’s Board of Directors and is expected to close during the fourth quarter of 2023, subject to stockholders and regulatory approvals and other customary closing conditions. Upon completion, Avid will become a privately-held company, and its common stock will no longer be traded on Nasdaq.
Avid’s Q2 2023 Performance
The multimedia company also announced its financial results for the second quarter of 2023, ending June 30, 2023.
Total revenue increased 11.1 percent year-over-year in the second quarter, driven by strong growth in enterprise subscription revenue. Active Paid Software Subscriptions reached approximately 544,400 as of June 30, 2023, an increase of 20.9 percent year-over-year. Subscription revenue reached $154 million, an increase of 27 percent year-over-year.
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