Posts Tagged ‘Deutsche Bank’

KIT Digital Exploring Strategic Options for Company Sale, Fails to Reach Agreement with JEC Capital

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Jun 13 2012

KIT Digital said that the company has hired Deutsche Bank to help it explore strategic alternatives, including a potential sale, consolidation or merger.  The news cheered beleaguered investors who sent the company’s shares up by more than 18 percent on the day.

The company announced in February 2012 that it had formed a strategic transaction committee to entertain such offers. Now KIT says that this process has been “ongoing” and the full Board is committed to moving it forward as quickly as possible.

KIT said that Deutsche Bank and representatives of the company have met with and are currently meeting with “a number of entities which have expressed interest in a potential transaction with the company.”

KIT also said it had failed to reach an agreement about a change in the Board of Directors with a group of activist investors, including JEC Capital, who was at the center of the investor drama at Miranda Technologies earlier this year.

According to the filing, KIT Digital management met last week with JEC Capital and other investors who have jointly proposed four candidates for addition to the Company board of directors. KIT says it “indicated a willingness to consider their proposed candidates, along with other potential candidates, but was unable to reach agreement on either the number of potential candidates to be appointed or the timing of such appointments,” because the activist investors “insisted that all four of their proposed directors be appointed to the board.”

Regardless of activist shareholders, KIT says it is already in the process of reconfiguring its Board of Directors, and has engaged CT Partners, a leading global executive search firm, to assist it in this search.

These announcements, which were made in a filing with the SEC, follows on from a series of issues that have roiled the company recently. 

KIT most recent financial results were substantially lower than the company’s previously issued guidance, prompting an avalanche of investor selling that caused the company’s share price to plummet. At that time the company outlined a series of actions aimed at placating investors, but the selling continued.

Earlier this year former KIT Digital CEO Kaleil Isaza Tuzman resigned from his position as the company’s non-executive chairman, citing differences with the company’s board of directors regarding KIT’s strategic sales process. Tuzman, who oversaw an aggressive M&A program at KIT Digital, recently stepped down as down as the company’s CEO as part of a management shake-up, which also involved the resignation of four directors from the company’s board.



Related Content:

KIT Digital Posts GAAP Loss of $24.9 Million in Q1 2012, Issues Updated Guidance

KIT Digital 8-K Filing – details new capital raised

Activist Shareholder Drama Continues at Miranda Technologies

WSJ Article: Investors Need First Aid KIT

KIT Digital Chairman Resigns, Cites Differences With Board of Directors Over Strategic Sales Process

Resignation Letter to KIT Digital Board from Kaleil Isaza Tuzman

Streaming Media Article: What’s Going on with KIT Digital?

Management and Board Shake Up at KIT Digital Sends Stock Down 22.3 Percent


© Devoncroft Partners. All Rights Reserved.


Envivio Files for $85 Million Goldman Sachs Led IPO

Broadcast technology vendor financials, SEC Filings | Posted by Joe Zaller
Apr 12 2012

Video encoding and transcoding specialist Envivio, which recently closed a $16.5m fundraising round, said it intends to sell 7.755m shares through an IPO backed by Goldman Sachs, Deutsche Bank and Stifel Nicolaus and William Blair & Company.  The deal, which will officially price on April 24th, is expected to raise about $85m at a price of $10 – $12 per share.  Envivio filed for IPO last year, but the offering has been delayed.  It now appears to be back on the table. The company has revised its S-1 (IPO) filing multiple time, and the latest version is the first to name its underwriters.

According to its latest S-1 filing Envivio is selling 6.5m shares in the offering.  An additional 1.255m shares are being sold by current Envivio investors including Sageview Capital Master, L.P., Atlantic Bridge, Crédit Agricole Private Equity and Crescendo Ventures.  Many of these firms are long-term inveestors in Envivio.  Sageview Capital Master, L.P. and Crédit Agricole Private Equity participated in the recent $16.5m fundraising round when they purchased 2,500,00 and 100,000 shares of Envivio respectively.

For the full year ended January 31, 2012 Envivio’s revenue was $50.6m, an increase of 69% over the previous year.  The company attributed the increase in sales to increased consumer demand for multi-screen video services, and continued growth into the North American market.

Envivio’s net profit for the full year was $138,000, versus a net loss of $2.5m during the previous year. Operating income for the year was $659,000, versus a loss of $1.99m last year.  Gross margins for the year were 63%, up from 62% during the previous year.

The company had $27.4m in cash, up from $10m at the end of last year.



Related Content:

April 2012 Envivio S-1/A filing

Envivio Reports Revenue Was Up 69 Percent in FY 2012, Updates IPO Documents

Envivio S-1/A Filing: Ammended S-1 (IPO) filing with the SEC

Envivio Closes $16.5 Million Fundraising Round

Envivio D/A Filing: Disclosed newly raised funds

TechCrunch Article: On-Demand Video Services Company Envivio Files To Go Public

Previous year: Envivio Says it Doubled Revenue in Fiscal 2011


© Devoncroft Partners. All Rights Reserved.


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