KIT Digital Lining Up Another Acquisition
KIT digital, a provider of IP-based asset management solutions to enterprise customers, is lining up a new multi-million dollar acquisition by the end of March after raising US$31.3 million through a share offering.
"The acquisition is not right around the corner but it is something we’d like to see complete by the end of Q1," KIT Chairman and CEO Kaleil Isaza Tuzman tells Streaming Media. "It’s a company we’ve been talking to for six quarters. A company we know quite well at a management and a cultural level."
The move continues the company’s buying spree following the October 2009 swoop for Nunet and The FeedRoom. Integration of those companies is about 80% complete according to Isaza Tuzman, with both brands subsumed under the KIT name.
"We made more personnel changes in The Feedroom than we did at Nunet," says Isaza Tuzman. "To get to a margin level we felt comfortable operating with we had to take some hard decisions at the management layer while Nunet was a leaner ship already. Nunet also slotted into an area of higher growth—mobile consumption of IP video."
He added, "If we’d not if proceeded with the Feedroom and Nunet acquisitions at good pace we wouldn’t have been in a position to proceed with this transaction.
"Our ambition for 2010 and beyond is to get our current market share of 12-15% based on revenue and cash flow up to 30-50%. We’ll achieve that by executing on organic growth target and also with one or two complementary acquisitions."
2009 results for the company KIT revealed revenues of $47 million (with 10%+ operating EBITDA margins) with likely 2010 revenues of $75 million (with 17.5% operating EBITDA).
Megahertz and Accela bring the number of KIT acquisitions to five in the past 11 months