NEW YORK: Kit Digital, an on-demand software solutions provider for Internet protocol-based video assets, has acquired competitor online video communications firm The FeedRoom in an all-stock deal valued at $9.8 million. At the same time, Kit also acquired German-based video management company Nunet for about $11.1 million, which included about $7.9 million in cash.
The acquisition expands Kit Digital's presence in North America where FeedRoom's more than 80 enterprise clients include General Motors, Best Buy, and the US Department of Defense. Kit's headquarters are in Prague but it has offices around the globe, including in New York, London, and Toronto. It will integrate FeedRoom's Studio software into its offering, and FeedRoom clients will gain access to Kit Digital's VX IP video management platform.
Besides client roster and geographic enhancement, Kaleil Isaza Tuzman, CEO and chairman of Kit Digital, says he was drawn to The FeedRoom because of its focus on areas such as corporate marketing, which is responsible for “a tremendous amount of data and footage that needs maintenance.”
“Broadcast PR is increasingly an area that a company like ours is thinking about,” says Isaza Tuzman, adding that the company wants to put greater emphasis on working through PR consultants, ad agencies, and others to bring the range of video services to clients.
FeedRoom's annual revenues were estimated at about $6 million, according to the acquisition announcement. It has 53 employees and offices in Seattle and Boston in addition to its New York headquarters. The privately-held company turned 10 this year.