Avid divests consumer businesses
WORLD: Avid has announced that it is divesting its consumer businesses in order to ‘concentrate on core markets’. As part of the transactions, certain Avid employees will transfer to each acquiring company.
This move signals the beginning of a series of actions the company will undertake in order to focus on its media enterprise and post and professional customers. As a direct result of the sales, Avid estimates that approximately 20 per cent of its permanent employee base will be impacted by the divestitures and headcount reduction plans.
Avid’s consumer audio products are being sold to inMusic, the parent company of Akai Professional, Alesis and Numark. The products involved in this transaction include M-Audio brand keyboards, controllers, interfaces, speakers, digital DJ equipment and other product lines. Avid stresses that it 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.
Meanwhile, the company’s consumer video editing line will be sold to Corel Corporation, a consumer software company headquartered in Canada. The products involved in this agreement include Avid Studio, Pinnacle Studio, the Avid Studio App for the Apple iPad, in addition to various other video capture products.
‘The changes we are announcing today make Avid a more focused and agile company,’ said Gary Greenfield, CEO of Avid. ‘By streamlining and simplifying operations, we expect to deliver an 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.’
Avid reports that the divested product lines contributed approximately $91 million towards its 2011 revenue of $677 million.