The sale of Avid Technology (maker of video enhancing utility Avid Media Composer in addition to ProfessionalTools, shared storage and quite a lot of different media creation applied sciences) has been rumored for quite a while. It’s now virtually formally official as Avid has issued a press launch titled Avid Technology Enters into Definitive Agreement to Be Acquired by an Affiliate of STG for $1.4 Billion. The full press launch is pasted beneath.
But I believe this Tweet sums it up finest:
The finish of an period…
— Marc Bach, C.S.I. (@marcplanb) August 10, 2023
What does this imply for the numerous Avid editors, shared storage homeowners and ProfessionalTools mixers on the market? Time will solely inform and hypothesis has run the gamut of concepts, akin to promoting off ProfessionalTools to making a stand-alone shared storage firm to licensing a lot of their expertise to locations they’ve by no means licensed it earlier than. Time will inform and we’ll maintain updating the story once we hear extra.
There has been lots of discuss on Twitter X about it.
Yea I believe MC is useless. It’s codebase is just too historical to be saved, so to modernize it could take a full floor up re-write. And ProfessionalTools sells WAY extra then MC. I believe the patents from MC get bought off or licensed off and the product simply will get killed.
— Joey D’Anna (@joeydanna) August 10, 2023
And now that they’re a “private company” their solely stakeholders now are their clients. So let’s see them double down on taking good care of them. I hope folks don’t gloss over this and perhaps maintain them to this activity
— Kevin Bourke (@BourkePR) August 9, 2023
As quickly as I learn “private equity firm” I knew AVID was useless. #avid
— Brian Mulligan (@BKMeditor) August 9, 2023
To me, this sentence says all of it:
“Upon closing, this transaction will deliver immediate, significant and certain value to our stockholders.”
Notice they didn’t say “clients “
— Kevin Bourke (@BourkePR) August 9, 2023
Avid Technology Enters into Definitive Agreement to Be Acquired by an Affiliate of STG for $1.4 Billion
Stockholders to Receive $27.05 Per Share in Cash
Transaction Represents 32.1% Premium to Avid’s Unaffected Share Price on May 23, 2023
Avid to Become a Privately Held Company Upon Completion of the Transaction
BURLINGTON, Mass., Aug. 09, 2023 (GLOBE NEWSWIRE) — Avid® (NASDAQ: AVID), a number one expertise supplier that powers the media and leisure business, right now introduced that it has entered right into a definitive settlement to be acquired by an affiliate of STG in an all-cash transaction valuing Avid at roughly $1.4 billion, inclusive of Avid’s internet debt. Under the phrases of the settlement, Avid stockholders will obtain $27.05 in money for every share of Avid widespread inventory. The money buy value represents a premium of 32.1% over the Company’s unaffected closing share value on May 23, 2023, the final full buying and selling day previous to media hypothesis relating to a possible sale of the Company.
“Since our founding over 30 years ago, Avid has delivered technology that enables individuals and enterprises who create media for a living to make, manage and monetize today’s most celebrated video and audio content across the globe. We are pleased to announce this transaction with STG, who share our conviction and excitement in delivering innovative technology solutions to address our customers’ creative and business needs,” mentioned Jeff Rosica, Avid’s Chief Executive Officer and President. “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. 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.”
John P. Wallace, Chairman of the Avid Board of Directors, mentioned, “This transaction is the result of a comprehensive review of strategic alternatives for Avid. Upon closing, this transaction will deliver immediate, significant and certain value to our stockholders. After carefully evaluating a variety of options, the Board determined that this transaction is in the best interests of Avid and its stockholders.”
William Chisholm, Managing Partner of STG added, “STG has admired Avid’s heritage as a category creator and pioneer in the media and entertainment software market for many years. We are excited to partner with Jeff and the management team to build on the Company’s history of delivering differentiated and innovative content creation and management software solutions. We look forward to leveraging our experience as software investors to accelerate Avid’s growth trajectory with a deep focus on technological innovation and by delivering enhanced value for Avid’s customers.”
Transaction Details
The transaction was unanimously accredited by Avid’s Board of Directors and is predicted to shut through the fourth quarter of 2023, topic to Avid stockholder approval, regulatory approvals and different customary closing circumstances. The transaction shall be financed by way of a mix of fairness and debt financing and isn’t topic to a financing situation. Upon completion of the transaction, Avid will change into a privately-held firm, and its widespread inventory will now not be traded on Nasdaq.
For additional data relating to the phrases and circumstances contained within the definitive transaction settlement, please see Avid’s present report on Form 8-Okay, which shall be filed with the U.S. Securities and Exchange Commission in reference to the transaction.
Second Quarter 2023 Results
Avid right now will announce its monetary outcomes for the second quarter of 2023, which ended on June 30, 2023. The press launch shall be accessible on the Investor Relations part of the corporate’s web site and the web site of the U.S. Securities and Exchange Commission. In gentle of right now’s introduced transaction, Avid is cancelling its beforehand scheduled earnings convention name.
Advisors
Goldman Sachs & Co. LLC is serving as monetary advisor to Avid, and Sidley Austin LLP is serving as authorized counsel. Rothschild & Co is serving as monetary advisor to STG, and Paul Hastings LLP is serving as authorized counsel to STG. Sixth Street Partners and Silver Point are offering dedicated debt financing in help of the transaction.
Avid Powers Greater Creators
People who create media for a residing change into higher creators with Avid’s award-winning expertise options to make, handle and monetize right now’s most celebrated video and audio content material—from iconic motion pictures and bingeworthy TV collection, to community information and sports activities, to recorded music and the stay stage. What started greater than 35 years in the past with our invention of nonlinear digital video enhancing has led to particular person artists, artistic groups and organizations all over the place subscribing to our highly effective instruments and collaborating securely within the cloud. We proceed to re-imagine the numerous methods editors, musicians, producers, journalists and different content material creators will carry their tales to life. Discover the probabilities at avid.com and be part of the dialog on social media with the multitude of good artistic individuals who select Avid for a lifetime of success.
About STG
STG is a personal fairness associate to market-leading firms in knowledge, software program, and analytics. The agency brings expertise, flexibility, and assets to construct strategic worth and unlock the potential of progressive firms. Partnering to construct customer-centric, market-winning portfolio firms, STG creates sustainable foundations for development that carry worth to present and future stakeholders. The agency is devoted to reworking and constructing excellent expertise firms in partnership with world-class administration groups. STG’s expansive portfolio has consisted of greater than 50 international firms. For extra data, please go to www.STG.com.
Could be fantastic. Maybe these STG folks have a plan to repair the title device? https://t.co/K5wcMHdaDH
— Kyle Gilman (@KyleGilman) August 9, 2023
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