Avid Acquired, Will Become A Privately-Owned Company

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Avid – maker of Pro Tools and other professional media solutions – has announced that it has entered into a definitive agreement to be acquired by an affiliate of private equity partner STG in an all-cash transaction, valuing Avid at approximately $1.4 billion, inclusive of Avid’s net debt.

Under the terms of the agreement, Avid stockholders will receive $27.05 in cash for each share of Avid common stock. The cash purchase price represents a premium of 32.1% over the Company’s unaffected closing share price on May 23, 2023, the last full trading day prior to media speculation regarding a potential sale of the Company.

“This transaction is the result of a comprehensive review of strategic alternatives for Avid,” said John P. Wallace, Chairman of the Avid Board of Directors. “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.”

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 stockholder 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 be traded on Nasdaq.

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