Avid Technology Inc (AVID.O), a developer of media editing software, will be acquired by private equity company Symphony Technology Group (STG) on Wednesday for approximately $1.4 billion, including debt.
Avid stockholders will receive $27.05 per share in cash as part of the agreement, the business announced in a statement, confirming an earlier Reuters story.
The price of the acquisition is 32% higher than Avid’s closing share price on May 23, when Reuters first reported that the business was considering a sale.
According to Avid Chairman John Wallace, “The Board carefully considered a number of options and determined that this transaction is in the best interests of Avid and its stockholders.”
In the fourth quarter of 2023, the deal is anticipated to close. According to Avid, the deal’s debt funding was provided by Silver Point and Sixth Street Partners.
Since its founding in 1987, Avid has focused on serving the entertainment sector with technology and software for editing. Popular films including “Top Gun: Maverick” and “Avatar: The Way of Water” were made with the use of its products, which also include Media Composer, MediaCentral, and AirSpeed.
Following a 2019 agreement, Impactive Capital LP, an activist hedge fund and Avid’s largest stakeholder, has representation on the board of the Burlington, Massachusetts-based business.
STG is a mid-market private equity firm based in Palo Alto, California that specializes in technology investments. STG agreed to pay $1.5 billion to take SurveyMonkey’s parent firm, Momentive Global Inc, private earlier this year.
More than 50 technological businesses have benefited from investments made by STG, which presently oversees nearly $10 billion in assets.
The company’s financial adviser was Goldman Sachs Group Inc (GS.N), and its legal counsel was Sidley Austin LLP. STG was given financial advice from Rothschild & Co, and the private equity company’s legal guidance came from Paul Hastings LLP.
