KIT Digital Buying Multicast Media for $18M

Gail Chiasson, North American Editor

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.

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