Published: 10.12 Europe/London, April 12, 2011 by Julian Clover
Ioko, the IP video management company that has worked on projects for the BBC, Sky Player, Filmflex, Lovefilm, and SeeSaw has been sold to KIT Digital for $79.4 million (€55.19 million).
The purchase continues an acquisition spree that has previously included video asset management software provider Polymedia, New York City-based KickApps, Paris-based Kewego, and San Francisco-based Kyte.
“The core KIT Platform video asset management software (VAMS) that we have built over the years – and which we enhanced by the acquisition of social media and Smartphone publishing technology earlier this year – will continue to support and strengthen our work in the field and allow for Ioko to expand more rapidly on a more robust product set,” said Alex Blum, KIT digital’s chief operating officer.
Ioko provides an end-to-end managed cloud-based platform solutions for multiscreen video delivery over IP to telco, cable, media and entertainment companies. Approximately 50 clients, also include AT&T, Channel 4, Diageo, Disney, Electronic Arts, Foxtel, Evolution Gaming, ITV, Liberty Global, Molson Coors Brewers, Samsung, Universal Music, Univision and VimpelCom.
“This transaction represents the culmination of a three-plus year dedicated process to achieve global scope and market share in the IP video platform software sector, both from a geographical and capabilities perspective,” said Kaleil Isaza Tuzman, chairman and chief executive officer of KIT digital.
“It also represents the successful conclusion of a carefully managed acquisition process for which we raised outside equity capital in December 2010, and which necessitated the navigation of complex shareholder and regulatory challenges,” added Tuzman. “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 US, UK and EU anti-trust review.”
The company said the acquisition of ioko is expected to be substantially accretive on both an EBITDA and cash-flow multiple basis.