Several months after exploring its options, Avid Technology was sold to a tech focused private equity firm, STG for $1.4 billion. The good news is critics can finally squash flying rumors that a competitor like Apple is buying it. The newly purchased company is going to be held privately once more, allowing it to NOT have to operate based on appeasing shareholders’ demands. This is great news for Pro Tools Users and again reinforces that Pro Tools is the standard in the industry for commercial recording, editing and mixing.
How Will the Sale of Avid Affect Pro Tools ?
Avid's Chief Executive Officer and President implied that the Palo Alto-based venture capital firm, STG will only "help accelerate the achievement of our Stategic vision, building on the momentum of our successful transformation over the past several years." Going from a public to a privately held company can often allow a company to focus on itself, without the constant pressures of having to please shareholders. The financials suggest a focused effort on increasing subscription models and expanding growth with enterprise level clients who benefit from the software's unique capabilities unmatched by other DAWS,
In 2020, the audio division of Pro Tools and Sibelius accounted for 45 % of the company's product revenue, despite the company's extensive video editing software (Media Composer), external hardware, network and console equipment offerings. A final closing of the sale is anticipated during the fourth quarter of 2023; and the sale is still subject to Avid stockholder and regulations approval, along with other closing conditions which must be met. There is also a termination fee of $39.8 million if Avid decides to terminate the sale transaction, which limits Avid’s ability to change their mind.
STG will acquire Avid in an all-cash transaction for the price of $27.05 per share. For wanting to understand the Avid financial numbers in this transaction, please refer to Devoncroft's analysis.
Pro Tools is deeply embedded as the standard in audio recording for commercial music and post production and was first introducted in 1991 by Digidesign after Sound Tools II,
Jeff Rosica, Avid’s chief executive officer and president, stated, “We are pleased to announce this transaction with STG, who share our conviction and excitement in delivering innovative technology solutions to address our customers’ creative and business needs. STG’s expertise in the technology sector and significant financial and strategic resources will help accelerate the achievement of our strategic vision. This transaction represents the start of an exciting new chapter for Avid, our customers, our partners and team members and is a testament to the importance of Avid and our solutions in powering the media and entertainment industry.”
William Chisholm, managing partner of STG, added, “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.”
Being STG's management is a long-standing Avid fan, odds are Avid Pro Tools will have the resources and commitment to further improve it's capabilities while continuing to reinforce its position in the high-level professional markets; a space that no other DAW has been able to match and for good reason.
Learning the software can be a challenge because of Pro Tools' extensive capabilities and functionality. So the professional industry also has relied on the Avid Learning Partners like ProMedia Training to provide continuing education and resouces for the professional community to stay up to date on constant technology changes. ProMedia Trainin is the longest running Avid ALP in the U.S. since 2002 providing certified Avid Training options for all tiers of Pro Tools Certification in User Specialist, Operator Professional, Expert music, post production and Dolby Atmos.
Mihai Boloni Expert Certified Pro tools Instructor Promedia Training-Pro Tools Certification Avid Learning Partner Professional protoolstraining.com
