Private equity firm STG completes acquisition of Avid for $1.4B

By NewscastStudio

Subscribe to NewscastStudio for the latest news, project case studies and product announcements in broadcast technology, creative design and engineering delivered to your inbox.

Avid Technology, Inc. has finalized its sale to an affiliate of Symphony Technology Group (STG), a private equity firm specializing in transformative investments within the technology sector.

The $1.4 billion all-cash transaction concludes a process initiated on August 9, 2023, receiving the green light from Avid’s shareholders on November 2.

This strategic move marks a significant shift for Avid, best known for its groundbreaking Media Composer and Pro Tools software, which have been instrumental in the transition from film to digital in Hollywood, earning the company accolades including Academy Awards for technical merit.

This acquisition marks Avid’s transition from a public entity to a private company with its stock delisted from the Nasdaq prior to trading on November 7.

Avid, founded in 1987, has been at the forefront of media production, significantly impacting how content is created, managed, and consumed. Its 1994 acquisition of Digidesign cemented its position, bringing the industry-standard audio production tool Pro Tools under its umbrella.

More recently, Avid has ventured into artificial intelligence with the introduction of Ada, a suite that complements its existing AI-driven tools like ScriptSync AI and Media Composer PhraseFind AI, signaling a commitment to innovation in the digital age.

Jeff Rosica, CEO and President of Avid, asserts that the transition to a private company structure will infuse agility into their operations, fostering rapid innovation and sustained industry leadership. He anticipates that the partnership with STG will not only bolster Avid’s ongoing transformation but also enhance their strategic vision’s actualization.

“By becoming a private company, we believe Avid will be able to achieve the speed of innovation, scale and performance required for us to continue leading the industry forward,” said Rosica. “Combined with their significant operational and financial resources, STG brings deep investment experience in the technology sector that will accelerate the achievement of Avid’s strategic vision, building on the momentum of our successful ongoing transformation achieved over the past several years.”

Advertisement

“We are excited to begin the next phase of Avid’s journey. Avid’s solutions are integral to content creation and management workflows across the film, television and music markets. Building on Avid’s established leadership position, we look forward to accelerating Avid’s growth trajectory through a deep focus on innovation and delivering enhanced customer value,” said STG in a statement.

Subscribe to NewscastStudio for the latest news, project case studies and product announcements in broadcast technology, creative design and engineering delivered to your inbox.