Private Equity Firm STG to Acquire AVID for $1.4 Billion

by | Nov 4, 2023 | Tech | 0 comments

AVID — creator of Pro Tools production software — is being sold to an affiliate under equity firm STG.

The acquisition between STG and AVID is an all-cash transaction valuing Avid at approximately $1.4 billion, inclusive of Avid’s net debt.

“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,” said Jeff Rosica, AVID’s CEO and president.

The company will run privately, meaning their shares will not trade publicly on the public stock markets.

The Agreement

As the agreement stands, AVID stockholders will receive $27.05 in cash for each share of AVID common stock. The cash purchase price is 32.1% higher than AVID’s unaffected closing share price on May 23rd, 2023. This transaction is to close by the fourth quarter of 2023, subject to AVID stockholder and regulatory approval, amongst other closing conditions.

AVID announced their earnings for Q2 on June 30, 2023. The Press Release is available on their website under “Investor Relations” and via their X (formerly Twitter) page.

Trending Mergers And Acquisitions

This major acquisition by STG is a part of a trend of equity firms buying music companies. Recently, InMusic acquired Moog Music Inc., making Moog no longer an independent company. Global supply chain issues were among the main reasons for the buyout.

Pioneer DJ parent company AlphaTheta Corporation acquired Serato Audio Research Limited earlier this year. Both companies will still continue as standalone brands.

About Avid

Massachusetts-based AVID Technology, Inc. is a technology and multimedia company founded in 1987 by Bill Warner.  AVID develops digital editing systems, video and audio editing software, and management and distribution services.

About STG

California-based STG is a mid-market private equity firm focusing on technology investments.

STG began in 2002 as Symphony Technology Group, LLC, with the leadership rebranding the firm as STG in 2017. STG’s portfolio has consisted of more than 50 global companies with $10 billion in assets under management as of March 2023.

Earlier this year, STG took Momentive Global Inc, the parent company of SurveyMonkey, private for $1.5 billion.

Find more information on AVID’s acquisition by visiting AVID’s website. 

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