Avid Acquired for $1.4 Billion
Burlington, MA (August 9, 2023)—After months of speculation, Avid Technology announced late Wednesday afternoon that it has entered into an agreement to be acquired by an affiliate of private equity firm STG in a deal that valued the company at an estimated $1.4 billion, including its net debt.
Unanimously approved by Avid’s board, the deal is expected to close in the fourth quarter of 2023, whereupon Avid will become a privately-held company and will no longer be traded on Nasdaq. 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. After carefully evaluating a variety of options, the Board determined that this transaction is in the best interests of Avid and its stockholders.”
Under the agreement—which is subject to Avid stockholder approval, regulatory approvals and other customary closing conditions—Avid stockholders will receive $27.05 in cash for each share of Avid common stock. The cash purchase price is said to represent a premium of 32.1% over Avid’s closing share price on May 23, 2023, which was the last full trading day prior to media speculation regarding a potential sale of the Company.
In a statement, Jeff Rosica, Avid’s chief executive officer and president, noted, “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.”
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 Avid’s customers.” - dfMG