STG and Francisco Partners Eye Avid Technology Acquisition.

In the latest buzz surrounding potential acquisitions, Symphony Technology Group (STG) and Francisco Partners are reportedly leading contenders to purchase media software specialist, Avid Technology Inc. Earlier in the year, Avid, with Goldman Sachs Group’s advisory, began considering various strategic avenues, including a potential sale.

Inside sources, speaking under the condition of anonymity, suggest that an agreement might be reached within the month. Meanwhile, Avid is gearing up to release its quarterly financials on August 9th.

Avid’s stock experienced a significant uptick of over 16%, settling at $26.8 recently, following whispers of its engagement with private equity entities. This has elevated the company’s market worth to an estimated $1.2 billion.

While Avid and Goldman have chosen to remain silent on the speculations, and Francisco Partners has opted out of commenting, STG’s stance remains awaited.

Palo Alto’s STG, known for its tech investments, recently made headlines with its move to take Momentive Global Inc, SurveyMonkey’s parent entity, private in a deal valued at $1.5 billion.

On the other hand, Francisco Partners, a major player in the tech investment arena, has successfully raised a staggering $45 billion. Their recent collaboration with TPG Inc led to the joint acquisition of New Relic for a whopping $6.5 billion.

Avid, a company with roots dating back to 1987, is a key player in the entertainment tech space, offering advanced editing tools. Their portfolio boasts products like Media Composer and AirSpeed, which have been instrumental in blockbuster productions such as “Top Gun: Maverick.”

Impactive Capital LP, a proactive hedge fund and the largest stakeholder in Avid, managed to secure a pivotal position on Avid’s board back in 2019, marking a significant milestone in the company’s journey.

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