Video and editing software provider Avid Technology is exploring a potential sale, according to a Reuters report.
Citing people familiar with the matter, Reuters said that the Massachusetts-based company is working with Goldman Sachs Group on the sale process and has asked for binding offers from interested parties.
Avid’s shares jumped nearly 20% on the news, giving the company a market value of about $1 billion.
Reuters said that no deal is certain and that its sources had asked not to be identified because the matter is confidential. Spokespeople for Avid and Goldman Sachs declined to comment to Reuters.
In its first-quarter earnings, announced earlier this month, Avid’s annual recurring revenues (ARR) grew 8.1% to $247 million, while its active paid software subscriptions grew 22% year-on-year.
However, the company missed analysts’ expectations and its shares are down almost 20% year-to-date.
Jeff Rosica, Avid’s CEO and president, said at the time: “Our customers continue to adopt both our enterprise subscription and creative subscription offerings, resulting in strong growth in Subscription ARR, which we believe is a key metric in measuring the health of our business. In addition, as we work through the resolution of the ongoing supply chain issues, we did face some specific challenges and additional costs in the quarter, related to our audio hardware products, that were more significant than expected. This created substantial and unexpected gross margin headwinds for audio hardware, which impacted overall profitability and Free Cash Flow in the quarter.”