STG takes over Avid Technology in $1.4bn deal

The private equity firm STG has acquired media and entertainment technology provider Avid as part of an $1.4 billion deal.

Per the agreement, Avid stockholders will receive $27.05 in cash for each share of Avid common stock.

The cash purchase price represents a premium of 32.1% over the company’s unaffected closing share price on May 23.

In its latest Q2 report Avid reported total revenue of $108.5 million, which marked an increase of 11.1% year-over-year. While subscription annual recurring revenue rose by 7.0% year-over-year to $154 million at the end of the second quarter.

“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. 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 chief executive officer and president. “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.”

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.”