Video Services Consolidation: KIT Digital Buys Multicast for About $18 Million
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The slow-burn consolidation and shakeout of the online video services space continues. KIT Digital, the online video tools player now based in Prague, Czech Republic (it jumped from NYC to Dubai to now Prague in last 2-3 years), has done another acquisition, its sixth in recent years: it has bought rival video player Multicast, for about $18 million, a week after it announced closing a $15 million equity offering. It will use this $15 million to buy back 4 million outstanding warrants.
Of the $18 million KIT-Multicast deal, $4.9 million is in cash and the rest is in 1.3 million shares of KIT digital common stock, plus the assumption of approximately $4.6 million in long-term liabilities.
Multicast, based in Atlanta, hosts live as well as on-demand video events and focuses primarily on corporate audiences. It says it has about $12 million in annualized recurring licensing fees for its IP video management software, with other additional revenues related to professional services. Its 90+ employees will continue to be based out of Atlanta for now. Details in release.
Posted In: Money, M&A & Venture Capital, Mergers & Acquisitions, kit digital, multicast
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