BURLINGTON, Mass.—Following reports that Avid was in talks with a private equity group regarding a potential sale, Avid has announced that it has entered into a definitive agreement to be acquired by an affiliate of STG.
The deal, which is expected to close in Q4 2023, is an all-cash transaction valuing Avid at approximately $1.4 billion, including Avid’s net debt.
Upon completion of the transaction, Avid will become a privately-held company, and its common stock will no longer be traded on Nasdaq.
The companies said that Avid stockholders will receive $27.05 in cash for each share of Avid common stock, which represents a premium of 32.1% over the company’s closing share price on May 23, 2023, the last full trading day prior to media speculation regarding a potential sale of the company.
“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,” said Jeff Rosica, Avid’s CEO and president. “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.”
“This transaction is the result of a comprehensive review of strategic alternatives for Avid,” John P. Wallace, chairman of the Avid Board of Directors added. “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.”
“STG has admired Avid’s heritage as a category creator and pioneer in the media and entertainment software market for many years,” explained William Chisholm, managing partner of STG. “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.”
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 companies said.
The companies noted that the transaction will be financed through a combination of equity and debt financing and is not subject to any financing conditions.
Goldman Sachs & Co. LLC is serving as financial advisor to Avid, and Sidley Austin LLP is serving as legal counsel.
Rothschild & Co is serving as financial advisor to STG, and Paul Hastings LLP is serving as legal counsel to STG.
Sixth Street Partners and Silver Point are providing committed debt financing in support of the transaction.
