KIT Digital acquires Multicast
We first reported on KIT Digital for their collaboration with Latinstock. Today the Czech Republic company announced that it will acquite Multicast media technology for $18 million. KIT digital provides sofware solutions for managing and monetizing Internet Protocol (IP)-based video assets. Multicast is the North American market leader in live event broadcasting, Internet video management and targeted multimedia communications. The company generates $12 million in yearly licensing fees for its IP video managment services.
“Multicast complements and substantially expands our North American client base, as well as our capabilities in serving video to the ‘three screens’ of the mobile device, browser and IP-enabled television,” said KIT digital’s chairman and CEO, Kaleil Isaza Tuzman. “We expect this acquisition to be immediately accretive—on both a revenue and cash-flow multiple basis—and provide important synergies in terms of business development, geographical footprint, platform technology and overall growth potential.”
Lou Schwartz, Multicast CEO, commented: “As a profitable and long-term player in the IP video platform industry, we had numerous strategic options. We are excited to be teaming up with the global leader in IP video management and are confident that our collective strength will yield exceptional value and benefits for our newly combined customer base.”
Atlanta, Georgia, will continue to be home to Multicast’s 90+ employees and will become an important hub for KIT digital’s client delivery for both North and South America. KIT digital plans to close the acquisition of Multicast by March 31.
