Qumu Buys Kulu, Gains Cloud Solution for Enterprise Video Customers
Enterprise video solutions company Qumu has decided acquisition is its best option to create a cloud distribution option for its customers. The Minneapolis, Minnesota-based company reached across the Atlantic to acquire Kulu Valley, a U.K. company that offers tools for quickly creating video presentations. Besides adding to Qumu's video creation tools, the acquisition brings cloud content management and delivery. Kulu Valley's cloud offering has already been rebranded Qumu Cloud.
The acquisition was completed on Friday, October 3, with a total value of $15 million. Of that, $11.5 million is in cash and the rest in 275,000 shares of Qumu stock.
Prior to this, Qumu has focused on internal collaboration in its enterprise video offerings. Kulu, on the other hand, has built a cloud-based creation and distribution software-as-a-service offering. By bringing cloud distribution to the Qumu platform, customers can use it to reach prospective customers.
Kulu Valley now has over 80 customers, mostly in Europe. It generated a profit of $5.5 million in the twelve-month period ending June 30, 2014.
“The acquisition of Kulu Valley gives Qumu customers immediate access to best-in-class video content creation capabilities and an easy-to-deploy pure cloud solution, while also expanding our own addressable market,” says Sherman Black, Qumu's CEO and president. “For Kulu customers, Qumu’s industry leading video content management and delivery capabilities provide them with a clear expansion path. It’s a mutually beneficial relationship.”
In a survey of 12 enterprise video content management specialists, Gartner singles out two as category leaders.
Users can upload or create new video, then share it with coworkers or business partners.
Companies can record their meetings and search them later with spoken word indexing and search function.