Non-public equity’s enjoy of tunes tech continues, as STG acquires Pro Resources maker Avid for $1.4bn

A few of months ago, we wrote about personal equity’s desire in the songs technological innovation area, and seemed at a handful of of the tunes tech companies backed by effectively-funded PE firms.

Now, one of the world’s most popular makers of professional songs-earning computer software is being obtained in a offer really worth $1.4 billion.

Avid Technological innovation, the developer of video and audio enhancing equipment, including the properly-acknowledged Professional Equipment DAW, has agreed to be acquired by private fairness company Symphony Engineering Group (STG) in an all-income transaction well worth all over USD $1.4 billion, which include personal debt.

The offer is expected to shut through Q4 2023, subject to Avid stockholder approval and regulatory approvals, Avid and STG claimed in a assertion issued August 9.

Beneath the deal, shareholders of Burlington, Mass.-headquartered Avid will receive USD $27.05 in cash for each device of Avid’s popular inventory, symbolizing a 32.1% high quality about the company’s share price on May possibly 23, the previous trading day before Reuters described that the company was discovering a sale.

The company’s shares jumped 18% that working day on the information, acquiring earlier dropped precipitously pursuing a disappointing Q1 earnings report.

As not too long ago as the very first week of August, a number of traders were vying to obtain Avid, amongst them Francisco Companions, the personal fairness organization that acquired Berlin-centered songs tech corporation Indigenous Devices in 2021, and Kobalt Tunes Team in 2022.

Launched in 1987, Avid has come to be a distinguished company of online video and audio software package and tools. According to the company’s website, just about every file nominated for Record of the Calendar year at the 2022 Grammys was built with the assist of Avid Professional Resources, and all the films nominated for Very best Modifying and Most effective Photograph at the 2022 Academy Awards had been edited employing Avid Media Composer.

The Professional Equipment maker also operates a Diy audio distribution provider called AvidPlay, which distributes songs to more than 150 key platforms like Spotify, Apple Music, Amazon Music, and Tidal.

Menlo Park, Calif.-headquartered STG is a mid-current market non-public fairness organization founded by billionaire investor Romesh Wadhwani in 2002. Between its acquisitions are McGraw-Hill Development (2014), RSA Protection (2020) and McAfee Organization (2021).

STG’s acquisition of Avid has been unanimously authorized by the company’s board. Upon completion of the acquisition, Avid will develop into a privately held business and will be delisted from the NASDAQ.

Goldman Sachs & Co. LLC served as advisor to Avid in the sale course of action, and Sidley Austin LLP served as lawful counsel. On STG’s side, Rothschild & Co. served as monetary advisor, and Paul Hastings LLP served as legal counsel. Sixth Road Associates and Silver Position are delivering credit card debt funding in support of the transaction.

“Since our founding around 30 several years back, Avid has delivered technologies that enables men and women and enterprises who create media for a living to make, handle and monetize today’s most celebrated movie and audio content material across the globe,” Avid President and CEO Jeff Rosica said in a statement.

“We are delighted to announce this transaction with STG, who share our conviction and pleasure in providing ground breaking know-how solutions to deal with our customers’ imaginative and enterprise desires. STG’s know-how in the technological innovation sector and major financial and strategic means will help accelerate the accomplishment of our strategic vision, creating on the momentum of our productive transformation realized about the earlier several several years.

“This transaction signifies the commence of an enjoyable new chapter for Avid, our customers, our companions and our team associates and is a testomony to the importance of Avid and our remedies in powering the media and enjoyment sector.”

“STG’s abilities in the technologies sector and major monetary and strategic means will enable speed up the achievement of our strategic eyesight, building on the momentum of our successful transformation reached in excess of the previous quite a few years.”

Jeff Rosica, Avid

John P. Wallace, Chairman of the Avid Board of Directors, added: “This transaction is the outcome of a comprehensive overview of strategic choices for Avid. Upon closing, this transaction will supply immediate, important and specific price to our stockholders. Following meticulously evaluating a range of choices, the Board identified that this transaction is in the finest interests of Avid and its stockholders.”

STG Managing Companion William Chisholm mentioned the private equity agency, “has admired Avid’s heritage as a class creator and pioneer in the media and leisure program market for several many years.”

He extra: “We are enthusiastic to husband or wife with Jeff and the administration workforce to establish on the company’s heritage of offering differentiated and innovative written content development and administration program methods. We glimpse ahead to leveraging our working experience as computer software buyers to speed up Avid’s progress trajectory with a deep concentrate on technological innovation and by delivering enhanced value for Avid’s shoppers.”New music Enterprise Around the world