KIT Digital Buying Multicast Media for $18M
Kit Digital, with principal offices in Prague, Cologne, Dubai, London, Melbourne, New York, Stockholm and Toronto. is buying Multicast Media, Atlanta, Georgia (US), for approximately $18 million in cash and shares plus the assumption of $4.6 million in long-term debt.
Multicast is a North American market leader in live event broadcasting, Internet video management and targeted multimedia communications.
The deal will expand KIT’s client roster and revenues, particularly in government, enterprise and non-profit sectors. Almost 1,000 organizations used Multicast’s video platform to broadcast more than 50,000 live events over the course of 2009, with customers including governments, non-profit and faith-based organizations, as well as a number of Fortune 500 companies. Multicast receives approximately $12 million from customers licensing its video platform, as well as additional revenues from professional services.
KIT Digital had $47 million in revenue in 2009, and forecast that it would grow that amount by 60% to more than $75 million during fiscal 2010.
The deal will increase KIT Digital’s live and event-based video management capabilities. The company, which has primarily been focused on the distribution of on-demand video, will integrate Multicast’s software into its own VX-one platform, and expects the integrated solution to be ready by the third quarter of 2010.
.
Categories: Scuttlebut
