Avid, the owners of Pro Tools, is exploring a sale, according to sources. We have all the latest information.

Reuters are reporting that Avid Technology is working with Goldman Sachs Group and has asked for binding offers, according to sources. This is what they say;

“NEW YORK, May 24 (Reuters) - Avid Technology Inc (AVID.O), a provider of video and audio editing software and equipment to filmmakers and recording studios, is exploring a potential sale, according to people familiar with the matter.

The Burlington, Massachusetts-based company is working with Goldman Sachs Group (GS.N) on the sale process and has asked for binding offers from interested parties, the sources said.”

The report continues;

“Avid's shares jumped 18% on the news to $24.35 in Wednesday afternoon trading, giving the company a market value of about $1 billion.

The sources cautioned that no deal is certain and asked not to be identified because the matter is confidential. Spokespeople for Avid and Goldman Sachs declined to comment.

The company missed analysts' expectations, however, and its shares have dropped, down almost 20% year-to-date.

Avid Chief Executive Jeffrey Rosica told analysts on the company's earnings call that supply chain issues created "substantial and unexpected gross margin headwinds for audio hardware," which eroded profitability.

An activist hedge fund and Avid's largest shareholder, Impactive Capital LP, has representation on the company's board after cutting a deal with the company in 2019.”

Source

As more information emerges we’ll report.