STG completes $1.4bn acquisition of Avid Technology

Source: STG

The private equity firm STG has finalised the acquisition of leading media and technology provider Avid Technology in an all-cash offer of USD $1.4 billion.

The acquisition which was previously announced on August 9 was cleared by Avid stockholders on November 2. Under the terms of the agreement, Avid stockholders will receive $27.05 per share. The transaction sees Avid common stock to cease trading prior to the opening of trading on November 7, 2023, and will no longer be listed on the Nasdaq Stock Market.

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.

STG said Avid will operate as a privately-held company and remain headquartered in Burlington, Massachusetts.

“By becoming a private company, we believe Avid will be able to achieve the speed of innovation, scale and performance required for us to continue leading the industry forward,” said Jeff Rosica, Avid’s chief executive officer and president. “Combined with their significant operational and financial resources, STG brings deep investment experience in the technology sector that will accelerate the achievement of Avid’s strategic vision, building on the momentum of our successful ongoing transformation achieved over the past several years.”

“We are excited to begin the next phase of Avid’s journey. Avid’s solutions are integral to content creation and management workflows across the film, television and music markets. Building on Avid’s established leadership position, we look forward to accelerating Avid’s growth trajectory through a deep focus on innovation and delivering enhanced customer value,” added William Chisholm, managing partner, and Patrick Fouhy, Principal, of STG.