To increase market share in IP video platform software sector
Online video services provider KIT Digital will buy cloud-based content manager ioko in a $79.4m 100% stock deal.
KIT hopes to gain from ioko’s over-the-top (OTT) capabilities that allows premium video services delivered over the Internet to be formatted for and presented on televisions and other connected devices. ioko’s closed-network IPTV services are also expected to add further depth to KIT digital’s OTT verticals.
KIT chairman and chief executive Kaleil Isaza Tuzman said, "The deal will help KIT "achieve global scope and market share in the IP video platform software sector, both from a geographical and capabilities perspective."
ioko provides end-to-end managed cloud-based platform solutions for multi-screen video delivery over connected Internet Protocol (IP) devices to tier-one telco, cable, media and entertainment companies around the world.
ioko currently generates approximately $54m in annualised revenues. The company is expected to contribute in-line to KIT digital’s stated 23% EBITDA margin target for fiscal 2011.
Tuzman said, "We are very pleased that we were able to complete the acquisition of ioko under the originally negotiated terms and close to our originally intended timeframe, without ultimately having to go through formal U.S., U.K. or E.U. anti-trust review."
"We now look forward to integrating our two firms, rapidly realizing the sales synergies we anticipate, and focusing on organic growth and free cash-flow generation going forward."
This is KIT’s fifth acquisition this year.