Forged and crew together with actors Tom Cruise and Jennifer Connelly pose for a bunch picture on the premiere of ‘High Gun: Maverick’ in London, Britain Could 19, 2022. REUTERS/Henry Nicholls
NEW YORK, Aug 9 (Reuters) – Non-public fairness agency Symphony Know-how Group (STG) on Wednesday agreed to purchase media modifying software program maker Avid Know-how Inc (AVID.O) for about $1.4 billion, together with debt.
As a part of the deal, Avid shareholders will obtain $27.05 per share in money, the corporate mentioned in a press release, confirming an earlier Reuters report.
The deal represents a 32% premium to Avid’s closing share worth on Could 23, the day earlier than Reuters reported the corporate was exploring a sale.
“After fastidiously evaluating quite a lot of choices, the Board decided that this transaction is in the perfect pursuits of Avid and its stockholders,” Avid Chairman John Wallace mentioned.
The transaction is predicted to shut within the fourth quarter of 2023. Sixth Avenue Companions and Silver Level offered debt financing for the deal, Avid mentioned.
Based in 1987, Avid offers modifying software program and {hardware} primarily to leisure industries. Its merchandise, which have been used within the manufacturing of blockbuster motion pictures equivalent to “High Gun: Maverick” and “Avatar: The Means of Water,” embody Media Composer, MediaCentral and AirSpeed.
An activist hedge fund and Avid’s largest shareholder, Impactive Capital LP, has illustration on the Burlington, Massachusetts-based firm’s board after reducing a take care of the corporate in 2019.
Palo Alto, California-based STG is a mid-market personal fairness agency targeted on know-how investments. Earlier this yr, STG struck a deal to take Momentive World Inc, the dad or mum firm of SurveyMonkey, personal in a $1.5 billion deal.
STG at present manages about $10 billion of property and has invested in additional than 50 corporations within the know-how trade.
Goldman Sachs Group Inc (GS.N) served as monetary adviser to Avid, whereas Sidley Austin LLP was the corporate’s authorized counsel. Rothschild & Co served as monetary adviser to STG, and Paul Hastings LLP offered authorized counsel to the personal fairness agency.
Reporting by Milana Vinn and Anirban Sen in New York; modifying by Jonathan Oatis, Shinjini Ganguli and Sonali Paul
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