Title: Private Equity Firm Symphony Technology Group to Acquire Avid Technology for $1.4 Billion
New York, August 9, 2023 – Private equity firm Symphony Technology Group (STG) has announced its agreement to acquire Avid Technology Inc, a prominent media editing software maker, for approximately $1.4 billion, which includes debt. The deal is expected to close in the fourth quarter of 2023.
As part of the agreement, Avid shareholders will receive $27.05 per share in cash, representing a 32% premium to Avid’s closing share price on May 23. The decision comes after a period of exploration for Avid, which was reported earlier by Reuters. Avid’s Chairman, John Wallace, expressed confidence in the transaction, stating that the Board determined it to be in the best interests of Avid and its stockholders.
Avid, founded in 1987, specializes in providing editing software and hardware primarily to the entertainment industry. The company’s products, such as Media Composer, MediaCentral, and AirSpeed, have been instrumental in the production of blockbuster movies such as “Top Gun: Maverick” and “Avatar: The Way of Water.”
STG, based in Palo Alto, California, is a mid-market private equity firm focused on technology investments. With approximately $10 billion of assets under management, STG has invested in over 50 companies in the technology industry. This acquisition of Avid is in line with STG’s strategic vision and further strengthens its portfolio.
The acquisition has received debt financing from Sixth Street Partners and Silver Point. STG’s previous deals include the privatization of Momentive Global Inc, the parent company of SurveyMonkey, in a $1.5 billion agreement.
Goldman Sachs Group Inc acted as Avid’s financial adviser, while Sidley Austin LLP provided legal counsel. Rothschild & Co served as financial adviser to STG, with legal counsel provided by Paul Hastings LLP.
About the Authors:
Milana Vinn reports on technology, media, and telecom mergers and acquisitions. She has extensive experience covering TMT deals in private equity and previously worked at GLG and PE Hub. Milana holds a Masters in Business Journalism from the CUNY Graduate School of Journalism. For more information, contact Milana at 347-463-7957.
Anirban Sen is the Editor in Charge for U.S. M&A at Reuters in New York. With a history degree from Jadavpur University and a post-graduate diploma in journalism from the Indian Institute of Journalism & New Media, Anirban specializes in covering significant deals and is responsible for leading a team of reporters covering investment banking to venture capital. For inquiries, contact Anirban at +1 (646) 705 9409.
Disclaimer: This article adheres to Thomson Reuters Trust Principles.
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