Avid to Be Acquired by STG For $1.4B

Avid to Be Acquired by STG For $1.4B

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Following months of rumors that it was exploring a sale, Avid — the maker of the Media Composer editing system and Pro Tools audio postproduction system, both leading tools used in Hollywood for picture editing and sound, respectively — has entered into an agreement to be acquired by an affiliate of private equity firm STG in an all-cash deal valuing Avid at approximately $1.4 billion, inclusive of Avid’s net debt.

The Board of the Directors of the publicly traded, Burlington, Mass.-headquartered tech developer unanimously approved the sale, which is expected to close during the fourth quarter. With the acquisition, Avid will again become a privately held company.

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Avid was founded in 1987 and, with the introduction of the Media Composer, led the pivotal change in Hollywood from film-based to computer-based nonlinear editing. In 1994, it acquired Digidesign, the maker of Pro Tools. Both Media Composer and Pro Tools have been honored with Academy Awards of Merit (an Oscar statuette) by the Academy of Motion Picture Arts and Sciences.

The company’s tech lines also include tools for broadcasting, storage and asset management.

Calling the deal the start of a “new chapter for Avid,” president and CEO Jeff Rosica said in a released statement: “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.”

He added, “STG’s expertise in the technology sector and significant financial and strategic resources will help accelerate the achievement of our strategic vision.”

Said STG managing partner William Chisholm, “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.”