Avid has sold M-Audio and AIR Software to inMusic Group, the new parent company of Numark, Alesis, Akai and Alto, in a deal estimated to be worth around $17 million.
M-Audio is a leading manufacturer of digital audio and MIDI solutions, such as audio interfaces and keyboard controllers, while AIR Software makes specialised effects plug-ins for Avid's Pro Tools software.
Avid CEO Gary Greenfield issued the following statement:
"The changes we are announcing make Avid a more focused and agile company. By streamlining and simplifying operations, we expect to deliver improved financial performance and partner more closely with our enterprise and professional customers. Our objective remains to provide these customers with the innovative solutions that allow them to create the most listened to, most watched and most loved media in the world. I'm excited about our future prospects.
"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.
??"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."
Jack O’Donnell, owner and CEO of inMusic, added:
“By acquiring the AIR Software Group and M-Audio, we’re not only broadening but also deepening our commitment to the future of music creation and production. said
“All of our brands are technology leaders, and they all have tremendous market momentum. With the addition of AIR and M-Audio, we’re in an even better position to push the boundaries of computer-based composition, production, and performance. Naturally this will be very positive for musicians, who will get better software, better hardware, and a much more integrated music-making experience as a result.”
The acquisitions also represent a new relationship with Avid, with the AIR Software Group continuing to develop and maintain technologies for the Pro Tools range and a number of M-Audio products will continue to include Pro Tools software.
M-Audio and the AIR Software Group will also dovetail with Akai Professional, Alesis, and Numark in several areas, such as product development, engineering, and distribution.
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