By Milana Vinn and Anirban Sen
NEW YORK (Reuters) – Private equity firm Symphony Technology Group (STG) is nearing a deal to acquire media editing software maker Avid Technology Inc for close to $1.4 billion, including debt, according to people familiar with the matter.
STG will buy Avid for just over $27 per share in cash, after prevailing in an auction for the company, the sources said. The deal represents a 32% premium to Avid’s closing share price on May 23, the day before Reuters reported the company was exploring a sale.
The agreement may come alongside the publication of Avid’s quarterly earnings report later on Wednesday, the sources added, asking not to be identified ahead of an official announcement.
Avid declined to comment. STG did not immediately respond to a request for comment.
Founded in 1987, Avid provides editing software and hardware primarily to entertainment industries. Its products, which have been used in the production of blockbuster movies such as “Top Gun: Maverick” and “Avatar: The Way of Water,” include Media Composer, MediaCentral and AirSpeed.
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An activist hedge fund and Avid’s largest shareholder, Impactive Capital LP, has representation on the Burlington, Massachusetts-based company’s board after cutting a deal with the company in 2019.
Palo Alto, California-based STG is a mid-market private equity firm focused on technology investments. Earlier this year, STG struck a deal to take Momentive Global Inc, the parent company of SurveyMonkey, private in a $1.5 billion deal.
STG currently manages about $10 billion of assets and has invested in more than 50 companies in the technology industry.
(Reporting by Milana Vinn and Anirban Sen in New York; editing by Jonathan Oatis)