by Stefan Wyeth | 3,9 / 5,0 | Approximate reading time: 2 Minutes
Avid Acquired by Symphony Technology Group in a $1.4 Billion deal

Avid Acquired by Symphony Technology Group in a $1.4 Billion deal  ·  Source: Avid

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This week, Avid has been acquired by STG which could have a serious impact on sectors of the professional audio market, we look into the details and find out why.

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Multimedia brand Avid Technology has entered into a definitive acquisition agreement with an affiliate of the STG private equity firm in a $1.4 billion deal that includes all debt.

Avid Acquired by STG

The agreement, which is still subject to approvals and conditions, states that Avid stockholders will receive $27.05 per share, which is apparently 32.1% more than the closing share price in May this year when there was media speculation about the sale.

Historically, Avid has been a major player in the world of professional audio since its $200 million acquisition of Digidesign back in the mid-1990s.

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Naturally, the market has moved on considerably but there could be a turning point in the future of the company. Will Avid remain rooted in the high-end market, or will it pivot to embrace the new creator economy that is currently blossoming?

In terms of relevance as a brand, Avid has somewhat faded into the background to the average musician compared to the aspirational status it used to hold. So we can only wait and see what new developments are in the pipeline.

As far as product development goes, Avid has continued on a similar trajectory for years. As the pro studio market was slowly overshadowed by hobbyists and multimedia creators they have failed to keep up, save for releases like the MBOX Studio.

Managing Partner of STG, William Chisholm, said that “STG has admired Avid’s heritage as a category creator and pioneer in the media and entertainment software market for many years. We are excited to partner with Jeff and the management team to build on the Company’s history of delivering differentiated and innovative content creation and management software solutions. We look forward to leveraging our experience as software investors to accelerate Avid’s growth trajectory with a deep focus on technological innovation and by delivering enhanced value for Avid’s customers.

Avid MBOX Studio
Avid MBOX Studio
Customer rating:
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More about the “Avid Acquired” story:

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Avid Acquired by Symphony Technology Group in a $1.4 Billion deal

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2 responses to “Avid Acquired by Symphony Technology Group in a $1.4 Billion deal”

    Mehdi T says:
    1

    would be nice to add who are STG, what do they already own, what have they done with it… etc…. we know AVID already.

    SA says:
    0

    Because they’ve lost so much market share, I’ll be curious if they follow what Davinci Resolve has done, and give people an extremely robust free version and make it a more obvious pipeline to commercial production studios that use their $$$$$$ hardware. For independent artists and audio professionals, PT has not been the best choice for years now, and I only use it when Film/TV clients specifically request it.

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