Avid nearing sale, Reuters reports

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The sale of Avid is drawing strong interest from private equity firms, according to reporting from Reuters.

Rumors of a potential sale first appeared in May 2023, with Avid declining to comment on any potential changes.

Avid Technology was founded in 1987 and pioneered digital non-linear editing systems, allowing editors to access and edit footage faster and more flexibly than traditional analog methods. The company’s editing tools quickly became industry standard in film, broadcast news, sports and other media sectors.

Over the past three decades, Avid has continued to innovate with new product launches like its Media Composer software and expanded into new sectors through acquisitions, such as audio editing and mixing along with virtual and augmented reality in broadcast.

The company has gone through periods of restructuring and leadership changes, but has maintained its position as a leading provider of content creation tools in all parts of the media and entertainment ecosystem.

Symphony Technology Group and Francisco Partners have emerged as top contenders to acquire Avid, which has been exploring strategic options including a sale with the help of investment bank Goldman Sachs. Reuters notes a deal could be finalized as soon as this month and values Avid at around $1.2 billion based on its current market cap.

Avid is scheduled to report earnings next week on August 9, which will give further insight into its financial position amid the sale process.

The prospective sale marks the culmination of a turbulent period for Avid, which has grappled with disruption in the media industry and shifting customer needs. Activist hedge fund Impactive Capital has also been pushing for changes as Avid’s largest shareholder after striking a deal in 2019 to get board representation.

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