An affiliate of private equity firm STG has completed the acquisition of Avid Technology — 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 — in an all-cash transaction valued at approximately $1.4 billion.
Under the terms of the agreement, Avid stockholders will receive $27.05 per share, and Avid will once again operate as a privately-held company and remain headquartered in Burlington, Massachusetts.
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“By becoming a private company, we believe Avid will be able to achieve the speed of innovation, scale and performance required for us to continue leading the industry forward,” said Avid president and CEO Jeff Rosica in a released statement. “Combined with their significant operational and financial resources, STG brings deep investment experience in the technology sector that will accelerate the achievement of Avid’s strategic vision, building on the momentum of our successful ongoing transformation achieved over the past several years.”
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.
In September, Avid introduced Ada, the company’s overall brand for its artificial intelligence-driven technology. Avid already offers tools such as ScriptSync AI and Media Composer PhraseFind AI. “We see AI as a co-pilot, to help a creative person do the work they are doing,” Rosica told The Hollywood Reporter in a September interview.
The company’s tech lines also include tools for broadcasting, storage and asset management.
“Building on Avid’s established leadership position, we look forward to accelerating Avid’s growth trajectory through a deep focus on innovation and delivering enhanced customer value,” said STG managing partner William Chisholm and principal Patrick Fouhy in a shared statement.
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