Private equity firm STG to buy Avid Technology for $1.4 bln

Non-public fairness agency STG to purchase Avid Know-how for $1.4 bln

'Top Gun: Maverick' premiere in London

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

Our Requirements: The Thomson Reuters Belief Ideas.

Milana Vinn reviews on know-how, media, and telecom (TMT) mergers and acquisitions. Her content material often seems within the markets and offers sections of the web site. Milana beforehand labored at GLG and PE Hub, the place she spent a number of years masking TMT offers in personal fairness. She graduated from CUNY Graduate College of Journalism with Masters in Enterprise Journalism.
Contact: 347-463-7957

Anirban Sen is the Editor in Cost for U.S. M&A at Reuters in New York, the place he leads the protection of the largest offers. After beginning with Reuters in Bangalore in 2009, Anirban left in 2013 to work as a know-how offers reporter in a number of main enterprise information retailers in India, together with The Financial Instances and Mint. Anirban rejoined Reuters in 2019 as Editor in Cost, Finance to steer a staff of reporters, masking all the things from funding banking to enterprise capital. Anirban holds a historical past diploma from Jadavpur College and a post-graduate diploma in journalism from the Indian Institute of Journalism & New Media.
Contact:+1 (646) 705 9409

Author: ZeroToHero

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