More Broadcast Vendor M&A: KIT digital Acquires Polymedia for $34.4m

Posted by Joe Zaller
Mar 17 2011

Kit digital announced that it has signed a definitive agreement to acquire IP video platform-provisioning provider Polymedia in a cash and stock deal valued at $34.4m.  The transaction includes guaranteed payments of approximately $34.4 million at closing, comprised of $17.2 million in cash and up to $17.2 million in KIT digital common stock.

Polymedia, headquartered in Milan, has a total full-time staff of approximately 150, plus 70+ occasional contractors.  The company is profitable as a stand-alone company, and is expected to contribute approximately $19m in annualized revenue to the enlarged company. KIT digital management said it expects the Polymedia acquisition to be accretive to earnings.

Polymedia’s core technology revolves around a set of proprietary tools that will allow KIT digital to more rapidly deploy its network operator and broadcaster solutions, and support various revenue models for premium IP video content. Deployments include video-on-demand (VOD) stores, subscription VOD, catch-up TV, e-commerce integrated product placement promotions, and advertising-sponsored content.

Kit digital has been very acquisitive recently, snapping up about a dozen companies, including the recent acquisitions of KickApps, Kewego and Kyte, which were announced at the end of January 2011.  

Last year, Kit digital raised $110m through a stock offering, and said much of the proceeds would be used to fund M&A activities

Following the completion of the Polymedia acquisition, KIT digital says it will have approximately $90 million in cash and equivalents.

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Related Content:

Press Release: KIT digital Acquires Polymedia

KIT digital Reports Q4 and Fiscal 2010 Results, Raises Guidance, Says Big M&A Deal Still on Track

Kit digital buys KickApps, Kewego, and Kyte

Kit digital sells $100m of stock, says proceeds will be used to fund broadcast industry M&A activities.

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