Rumors have been swirling about a potential sale of Avid due to its longstanding financial challenges. Today, those rumors were confirmed.
The implications of this acquisition for Avid Media Composer editors and Pro Tools users remain uncertain, as the announcement didn’t delve into the future plans for Avid Technology’s vast product range, which includes shared storage systems, audio hardware, control surfaces, graphics, and more.
Details of the Acquisition
According to the announcement, Avid stockholders are set to receive $27.05 in cash for each share of Avid common stock, marking a 32.1% premium over the company’s closing share price on May 23, 2023. This date is significant as it was the last full trading day before media speculation about the company’s potential sale began.
Avid’s Board of Directors has unanimously approved the transaction, which is slated to finalize in the fourth quarter of 2023. This is contingent upon receiving approval from Avid stockholders, meeting regulatory requirements, and other standard closing conditions. The acquisition will be funded through a mix of equity and debt financing. Once the deal is sealed, Avid will transition to a privately-held entity, and its stock will cease trading on Nasdaq.
