STG affiliate to acquire media tech giant Avid Technology for $1.4bn

Avid Technology, a leading figure in the media and entertainment technology sector, has entered into an agreement for acquisition by an affiliate of STG. This all-cash transaction places the value of Avid Technology at approximately $1.4 billion, inclusive of its net debt. The terms promise Avid Technology stockholders a sum of $27.05 for each share they own. Notably, this cash purchase price showcases a 32.1% premium, calculated in relation to Avid Technology’s closing share price on May 23, 2023.

Having been a cornerstone in the media and entertainment industry for over 30 years, Avid is now poised for an invigorating chapter with STG. Jeff Rosica, Avid Technology’s CEO and President, emphasized, “STG’s expertise in the technology sector and significant financial and strategic resources will serve to speed up the realization of our strategic vision.”

William Chisholm, Managing Partner of STG, also shared his enthusiasm for the upcoming collaboration. Highlighting Avid Technology’s longstanding heritage, he expressed confidence in the future technological advancements they plan to pioneer together.

John P. Wallace, Chairman of Avid Technology’s Board, revealed that the decision to merge was a result of comprehensive considerations of various strategic alternatives. This pivotal transaction has received unanimous approval from Avid’s Board of Directors. Expected to finalize in the fourth quarter of 2023, the acquisition has several preconditions, including obtaining stockholder approval and clearing regulatory checks. Once the agreement reaches its conclusion, Avid Technology will undergo a transformation, emerging as a privately-held entity, and thus will conclude its tenure of trading on Nasdaq.

Given the scale and potential of this acquisition, the industry is abuzz with anticipation. Both Avid Technology and STG share a steadfast commitment to technological innovation, indicating a bright and promising future for the former’s expansive clientele in the media and entertainment sectors.