Avid Provides Update on Jetsen Equity Investment; Commercial Alliance Underway Following Successful Launch
June 30 2017 - 4:00PM
Avid® (Nasdaq:AVID) announced that the regulatory approvals
required to complete the previously announced equity transaction
with Beijing Jetsen Technology (“Jetsen”) remain outstanding and
will not be obtained within the initial expected timeframe. Avid
and Jetsen have agreed to amend the terms of the previously
announced securities purchase agreement. Under the amended terms,
Jetsen will invest $18.16 million in Avid, the same amount as had
been previously announced, in return for a minority stake in the
company of between 4.5% and 8.9%, which represents less potential
dilution relative to the original agreement. The outside date when
either party is permitted to terminate the agreement has been
extended, and the transaction is now expected to close in the
fourth quarter of this year.
The commercial agreement also announced in January, in which
Jetsen is serving as the exclusive master distributor under a
five-year agreement that guarantees Avid approximately 15% annual
growth in greater China and represents a total contract value of
>$75M for the first three years, is effective and is not
affected by the delay in closing the equity transaction. This
go-to-market alliance began on schedule in the first quarter and
has proceeded as expected during the first half of this year.
“While we had hoped the equity transaction would close by the
end of Q2 as initially contemplated, we believe the amended
agreement demonstrates the commitment of both sides to closing this
transaction. We have been pleased by successful launch of the
commercial alliance and remain very optimistic about the promise of
that relationship to take advantage of the large opportunity for
Avid Everywhere in greater China,” said Louis Hernandez, Jr.,
Chairman and Chief Executive Officer, Avid.
“We have made significant progress on the commercial alliance
since its launch in January. We remain committed to pursuing an
equity investment in Avid and look forward to working to secure the
required regulatory approvals to close the transaction under the
amended terms of the agreement,” said Shengli Han, CEO, Beijing
Jetsen Technology.
Forward-Looking StatementsThe information
provided in this press release includes forward-looking statements
that involve risks and uncertainties. Such statements are made
in reliance upon the safe harbor provisions of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Forward-looking statements, which are based on certain
assumptions and describe Avid’s future plans, strategies and
expectations, can generally be identified by the use of
forward-looking terms such as "believe," "expect," "may," "will,"
"should," "could," "seek," "intend," "plan," "estimate,"
"anticipate" or other comparable terms. All statements in this
release that are not based on historical fact are "forward-looking
statements." Forward-looking statements include but are not limited
to: the anticipated benefits of the planned alliance with Jetsen,
including the planned equity investment; and other statements that
are not historical facts. Among the risks and uncertainties
that could cause actual results to differ from those described in
forward-looking statements are the following: the risk that the
investment of Jetsen in Avid may not receive regulatory approval or
may not close for other reasons; the risk that the announcement of
the transactions described in this release could have adverse
effects on the market price of Avid’s common stock and the risk
that the announcement of the alliance could have an adverse effect
on Avid’s operating results and businesses
generally. The risks included above are not exhaustive.
Other factors that could adversely affect Avid’s business and
prospects are described in the filings made by Avid with the SEC.
Avid expressly disclaims any obligation or undertaking to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise.
About AvidThrough Avid Everywhere™, Avid
delivers the most open and efficient media platform, connecting
content creation with collaboration, asset protection, distribution
and consumption. Avid’s preeminent customer community uses
Avid’s comprehensive tools and workflow solutions to create,
distribute and monetize the most watched, loved and listened
to media in the world—from prestigious and award-winning feature
films, to popular television shows, news programs and
televised sporting events, and celebrated music recordings and live
concerts. With the most flexible deployment and pricing options,
Avid’s industry-leading solutions include Pro Tools®, Media
Composer®, Avid NEXIS®, Interplay®, ProSet™ and RealSet™, Maestro™,
PlayMaker™, and Sibelius®. For more information about Avid
solutions and services, visit www.avid.com, connect with Avid
on Facebook, Instagram, Twitter, YouTube, LinkedIn,
or subscribe to Avid Blogs.
© 2017 Avid Technology, Inc. All rights reserved. Avid, the Avid
logo, Avid Everywhere, Avid Nexis, Interplay, MediaCentral, Media
Composer, Pro Tools, Sibelius, ProSet, RealSet, Maestro, and
PlayMaker are trademarks or registered trademarks of Avid
Technology, Inc. or its subsidiaries in the United States and/or
other countries. The Interplay name is used with the permission of
the Interplay Entertainment Corp. which bears no responsibility for
Avid products. All other trademarks are the property of their
respective owners. Product features, specifications, system
requirements and availability are subject to change without
notice.
PR Contact:
Sara Griggs
Avid
sara.griggs@avid.com
+1 310-907-6906
Investor Contact:
Robert Roose
Avid
robert.roose@avid.com
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