Symphony Technology Group (STG), a private equity firm that invests in technology companies, has agreed to buy Avid Technology Inc, a leading provider of media editing software and hardware, for about $1.4 billion, including debt.
The deal, which was announced on Wednesday, will give Avid shareholders $27.05 per share in cash, a 32% premium to the company’s closing price on May 23, the day before Reuters reported that the company was exploring a sale1. The transaction is expected to close in the fourth quarter of 2023.
Avid, founded in 1987, offers products and solutions for the entertainment industry, such as Media Composer, MediaCentral and AirSpeed. Its software and hardware have been used in the production of blockbuster movies such as “Top Gun: Maverick” and “Avatar: The Way of Water”. The company has an activist hedge fund and its largest shareholder, Impactive Capital LP, on its board.
STG, based in Palo Alto, California, is a mid-market private equity firm that focuses on technology investments. Earlier this year, STG struck a deal to take Momentive Global Inc, the parent company of SurveyMonkey, private in a $1.5 billion deal.
The merger will combine the expertise and resources of both companies to offer innovative solutions for the media industry. “After carefully evaluating a variety of options, the Board determined that this transaction is in the best interests of Avid and its stockholders,” said Avid Chairman John Wallace.
Goldman Sachs Group Inc served as financial adviser to Avid, while Sidley Austin LLP was the company’s legal counsel. Rothschild & Co served as financial adviser to STG, and Paul Hastings LLP provided legal counsel to the private equity firm.
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