The Burlington, Massachusetts-based company is working with Goldman Sachs Group on the sale process and has asked for binding offers from interested parties, the sources said.
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.
In its first-quarter earnings, Avid’s annual recurring revenue grew 8.1% to $228 million, while its active paid software subscriptions grew 22% year-on-year.
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.