Avid has decided to focus on its Media Enterprise and Post & Professional customers, and divest from its consumer businesses.
Avid has agreed to sell its consumer audio and video product lines. The company’s consumer audio products are being sold to inMusic, the parent company of Akai Professional, Alesis and Numark, among others. Headquartered in Cumberland, Rhode Island, inMusic’s brands include products for music production, performance and DJing. The products involved in this transaction include M-Audio brand keyboards, controllers, interfaces, speakers and digital DJ equipment and other product lines. Avid will continue to develop and sell its Pro Tools line of software and hardware, as well as associated I/O devices including Mbox and Fast Track.
Separately, the company’s consumer video editing line is being sold to Corel Corporation, a consumer software company headquartered in Ottawa, Canada. The products involved in this transaction include Avid Studio, Pinnacle Studio, and the Avid Studio App for the Apple iPad, as well as other older video capture products.
The company says that the divested product lines contributed approximately $91 million of Avid’s 2011 revenue of $677 million. As part of the transactions, certain employees of Avid will transfer to each acquiring company. Avid estimates that the proceeds from these transactions will be approximately $17 million, subject to closing inventory adjustment, with a portion held in escrow. Both transactions were expected to close yesterday, July 2, 2012.
Avid also plans to reduce the number of its employees as it streamlines operations, with approximately 20% of its permanent employee base impacted by the divestitures and headcount reduction plans. The company currently expects to incur a restructuring charge of approximately $19 to $23 million related to these actions and other associated measures.
The company’s cash balance on March 31, 2012 was $49.7 million. The proceeds from the sale of these product lines should offset most of the restructuring charges paid in 2012, according to Avid.
namniborNew AFfiliatePosted on 07/06/2012 at 22:17:38What ARE we home recording musicians SUPPOSED to think of this? Does this mean that even though AVID will continue to develope Pro Tools, but InMusic will be left to say keeping updated software like M-Audio's Hypercontrol for the Axiom Pro controller line? Does this mean that since AVID's MP version of Pro Tools, which is more CONSUMER-ORIENTED, now perhaps a thing of history? "RESTRUCTURING" could easily be read as near-bankruptcy, so why the matter-in-facrt news release with no explaination of exactly HOW this is to affect aspiring musicians that in this dire economy can hardly afford AVID's price for each update of their products? REAPER is looking better and better every day because as it stands now when one calls AVID for support, they require to know what PC, processor, graphics card, etc. that one is using and based on whether it is deemed an APPROVED system for AVID, that promised support after dropping five hundred plus dollars goes out the door...been there and done that. I personally hope AVID is realizing that with SO MANY VSTi synths out there,AVID's propriatory RTAS format pushes many away when there's so much more out there that is vst/au and remains that way unless AVID can milk all the little guys and sound designers of money. This news just makes a person ask MANY questions that AVID decided it best to DIVEST than INVEST in their loyal and professional customer base! Seems EVERYTHING goes to DIE and doomed for only the DJ market with InMusic. Just HOW MANY midi controllers can you produce before you flood the market? The answer to that was about 8 years ago! M-Audio/AVID's VENOM SYNTH---huge failure!
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