The business that produced blockbuster films like “Top Gun: Maverick” and “Avatar: The Way of Water” commands a 32% premium at $27.05 per share.
The hardware supplier for films like “Top Gun: Maverick” and “Avatar: The Way of Water,” Avid Technology, has been purchased by private equity firm Symphony Technology Group (STG) for almost $1.4 billion, including debt.
According to the agreement, Avid stockholders will receive $27.05 in cash for each share. The transaction reflects a 32.1 percent premium over the stock’s closing price on May 23 of this year, the last complete trading day before media rumors about a possible sale of the company surfaced.
Avid was established in 1987 and primarily serves the entertainment industries with technology and software for editing. Its goods, such as Media Composer, MediaCentral, and AirSpeed, have been employed in the making of blockbuster movies.
Chairman of the Avid Board of Directors John P Wallace stated: “This transaction is the outcome of a thorough analysis of Avid’s strategic alternatives. Our stockholders will get immediate, considerable, and definite value after this deal closes.
“We are pleased to be announcing this transaction with STG, who shares our conviction and enthusiasm in offering innovative technology solutions to address our customers’ creative and business needs,” said Jeff Rosica, Chief Executive Officer and President of Avid.Building on the forward momentum of our successful transformation over the previous few years, STG’s technology sector expertise along with significant financial and strategic resources will help speed the achievement of our strategic ambition. This deal marks the beginning of a thrilling new era for Avid, our clients, our partners, and our employees. It also serves as a reminder of how crucial Avid and our solutions are to the media and entertainment sector.
A mid-market private equity firm with a concentration on technology investments, STG is situated in Palo Alto, California. It presently oversees assets worth roughly $10 billion and has made investments in more than 50 IT businesses.
STG has long respected Avid’s history as a category innovator and forerunner in the media and entertainment software sector, said William Chisholm, Managing Partner of STG. We are thrilled to work with Jeff and the management group to continue the tradition of the company in providing unique and cutting-edge contents creation and management applications.
“With a strong focus on technological innovation and by delivering increased value for customers, we look at leveraging our experience as software investors to speed up Avid’s growth trajectory.”The deal was unanimously authorized by the board of directors of Avid, and it is anticipated to conclude during the fourth quarter of 2023, pending stockholder and regulatory clearances as well as other usual closing requirements. After the project is finished, Avid will be a privately held business, and commom stock will be no longer be traded on NASDAQ.
Q2 2023 Performance of Avid
The multimedia company also disclosed its financial performance for the six months ended June 30, 2023.The second quarter saw an 11.1 percent year-over-year increase in total revenue, mostly due to brisk growth in enterprise subscription revenue. As of June 30, 2023, there were around 544,400 active paid software subscriptions, up 20.9 percent from the previous year. $154 million in subscription revenue was generated, up 27% from the previous year.