An affiliate of private equity firm STG has officially completed its acquisition of Avid Technology in an all-cash transaction valued at approximately $1.4 billion. This move brings 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, back into private ownership. Under the terms of the agreement, Avid stockholders will receive $27.05 per share, and Avid will remain headquartered in Burlington, Massachusetts. This acquisition marks a significant milestone for Avid as it looks to accelerate its growth and innovation in the industry.
In a released statement, Avid president and CEO Jeff Rosica expressed his belief that becoming a private company will enable Avid to achieve the speed of innovation, scale, and performance required to continue leading the industry forward. He also emphasized that the deep investment experience in the technology sector brought by STG will accelerate the achievement of Avid’s strategic vision, building on the momentum of the company’s successful ongoing transformation achieved over the past several years.
Founded in 1987, Avid led a pivotal change in Hollywood from film-based to computer-based nonlinear editing with the introduction of the Media Composer. In 1994, it further solidified its position in the industry by acquiring 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, further establishing the company’s influence and impact in the entertainment industry.
In September, Avid introduced Ada, the company’s overall brand for its artificial intelligence-driven technology. Avid’s offerings now include tools such as ScriptSync AI and Media Composer PhraseFind AI. According to Rosica, the company sees AI as a co-pilot, designed to assist creative individuals in their work rather than replace them. In addition to AI-driven technology, Avid also offers tools for broadcasting, storage, and asset management, solidifying its position as a leading provider of innovative solutions for the media and entertainment industry.
STG managing partner William Chisholm and principal Patrick Fouhy shared their excitement about the acquisition, expressing their commitment to accelerating Avid’s growth trajectory through a deep focus on innovation and delivering enhanced customer value. With the backing of STG’s significant operational and financial resources, Avid looks forward to expanding its product offerings and strengthening its position as a leader in the technology sector.
As Avid enters this new phase as a privately-held company, it is poised to capitalize on the expertise and financial backing of STG to drive further innovation and growth. With a firm commitment to maintaining its leadership position and delivering exceptional value to its customers, Avid is set to embark on an exciting journey as it continues to shape the future of media and entertainment technology.