Avid to Be Acquired by Private Equity Firm STG for $1.4 Billion

Avid Technology Inc., a maker of audio and video editing tools, agreed to be acquired by private equity firm STG for about $1.4 billion, including debt.

(Bloomberg) — Avid Technology Inc., a maker of audio and video editing tools, agreed to be acquired by private equity firm STG for about $1.4 billion, including debt.

Under the terms of the deal, Avid investors will get $27.05 a share in cash, representing a 32% premium over the stock price on May 23, before speculation about an acquisition surfaced, the companies said in a statement Wednesday.

The deal followed a review of strategic alternatives that included a variety of options, Avid Chariman John Wallace said. The transaction is expected to close during the fourth quarter of 2023.

Avid, founded 36 years ago, sells editing tools that have become ubiquitous in Hollywood and the recording industry. All of the 2022 Academy Award-nominated films for editing and best picture used its technology, as well as the recordings nominated for record of the year at the 2022 Grammys.

Avid shares closed at $26.55 on Wednesday, near the acquisition price. The stock had plunged earlier in the year after the company reported disappointing results, but buzz over a potential deal helped it climb back.

Goldman Sachs Group Inc. served as Avid’s financial adviser, while Sidley Austin LLP was its legal counsel. Rothschild & Co. and Paul Hastings LLP advised STG. Sixth Street Partners and Silver Point will provide debt financing, according to the statement.

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