Latin America. Avid announced that it has entered into a definitive agreement to be acquired by an affiliate of STG in an all-cash transaction that values Avid at approximately $1.4 billion, including Avid's net debt.
Under the terms of the agreement, Avid shareholders will receive $27.05 in cash for each Avid common share. The cash purchase price represents a premium of 32.1% over the unaffected closing price of the Company's shares on May 23, 2023, the last full trading day prior to media speculation about a potential sale of the Company.
"Since our founding more than 30 years ago, Avid has delivered technology that enables the people and businesses that create livelihoods to create, manage and monetize today's most popular video and audio content around the world. We are pleased to announce this transaction with STG, which shares our conviction and enthusiasm for delivering innovative technology solutions to address our customers' business and creative needs," said 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 in recent years. This transaction represents the beginning 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 driving the media and entertainment industry forward."
John P. Wallace, Chairman of Avid's Board of Directors, said, "This transaction is the result of a thorough review of strategic alternatives for Avid. Upon closing, this transaction will deliver immediate, significant and certain value to our shareholders. After carefully evaluating a variety of options, the Board determined that this transaction is in the best interest of Avid and its shareholders."
William Chisholm, Managing Partner of STG added: "STG has admired Avid's heritage as a category creator and pioneer in the entertainment and media software market for many years. We are excited to partner with Jeff and the management team to build on the company's track record 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 technology innovation and delivering enhanced value for Avid customers."
Transaction Details
The transaction was unanimously approved by Avid's Board of Directors and is expected to close during the fourth quarter of 2023, subject to Avid shareholder approval, regulatory approvals and other customary closing conditions. The transaction will be financed through a combination of equity and debt financing and is not subject to a financing condition. Upon completion of the transaction, Avid will become a privately held company and its common stock will no longer trade on Nasdaq.
