Private equity firm STG has announced the acquisition of media editing software maker Avid in a deal worth $1.4 billion.
This deal marks a 32% premium to Avid’s closing share price on May 23, a day before reports emerged about the company exploring a potential sale.
The transaction is slated to be finalized in the fourth quarter of 2023. The acquisition is being financed with debt provided by Sixth Street Partners and Silver Point.
“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” said Jeff Rosica, Avid’s Chief Executive Officer and President. “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.”
Avid, founded in 1987, offers editing software and hardware primarily to the entertainment industry and is known for its products such as Media Composer, MediaCentral, and AirSpeed.
STG, based in Palo Alto, California, focuses on technology investments and recently made headlines with its $1.5 billion deal to take Momentive Global – owner of SurveyMonkey – private.
