Private equity firm STG nears $1.4 bln deal for Avid Technology -sources

Avid Technology

09/08/2023 19:45

By Milana Vinn and Anirban Sen
       NEW YORK, Aug 9 (Reuters) - Private equity firm Symphony
Technology Group (STG) is nearing a deal to acquire media
editing software maker Avid Technology Inc  AVID.O  for close to
$1.4 billion, including debt, according to people familiar with
the matter.
    STG will buy Avid for just over $27 per share in cash, after
prevailing in an auction for the company, the sources said. The
deal represents a 32% premium to Avid's closing share price on
May 23, the day before Reuters reported the company was
exploring a sale. 
    The agreement may come alongside the publication of Avid's
quarterly earnings report later on Wednesday, the sources added,
asking not to be identified ahead of an official announcement.  
    Avid declined to comment. STG did not immediately respond to
a request for comment. 
    Founded in 1987, Avid provides editing software and hardware
primarily to entertainment industries. Its products, which have
been used in the production of blockbuster movies such as "Top
Gun: Maverick" and "Avatar: The Way of Water," include Media
Composer, MediaCentral and AirSpeed.
    An activist hedge fund and Avid's largest shareholder,
Impactive Capital LP, has representation on the Burlington,
Massachusetts-based company's board after cutting a deal with
the company in 2019.
    Palo Alto, California-based STG is a mid-market private
equity firm focused on technology investments. Earlier this
year, STG struck a deal to take Momentive Global Inc, the parent
company of SurveyMonkey, private in a $1.5 billion deal.  
    STG currently manages about $10 billion of assets and has
invested in more than 50 companies in the technology industry.

 (Reporting by Milana Vinn and Anirban Sen in New York; editing
by Jonathan Oatis)
 ((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters
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