Video technology company KIT Digital has capped off a tech acquisition frenzy with the purchase of cloud based video provider ioko365 for US$79.4 million.
Marking KIT’s sixth acquisition this year after buying KickApps, Kewego, Kyte, Polymedia and WWB, the company states it will be moving from its shopping spree phase to one focused on driving organic growth.
The latest purchase gives KIT a bigger slice of the international broadcasting pie and tightens its links to Australia. ioko has existing relationships with players including Foxtel, AT&T, BBC, BSkyB, Channel 4, Samsung, ITV, Liberty Global, LoveFilm and SeeSaw.
Foxtel engaged ioko to launch a full pay-television service to the Xbox gaming console, launched late last year. Other clients include Diageo, Disney, Electronic Arts, Evolution Gaming, , Molson Coors Brewers, 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 CEO of KIT Digital.
ioko has approximately 380 employees and full-time contractors, with offices in Sydney, San Diego, London, York in the UK, and Spain’s Malaga. It provides end-to-end managed cloud-based platform solutions for multi-screen video delivery over connected IP to telco, cable, media and entertainment companies globally but with a strong focus on North American, Northern European and Australasian markets.
The company will also help KIT springboard into the China market, which is the next growth opportunity for the ambitious video based operator.
Gavin Campion, KIT Digital's president said, “we see the ioko acquisition as being squarely aligned with our stated strategic objective of delivering larger and more advanced video deployments. We will be focused on internal product development, channel sales, on-the-ground growth in China and other non-M&A related strategic initiatives.”
The acquisition involves the appointment of several ioko executives to KIT digital's global management team, including Mark Christie, ioko’s joint global CEO, Scott Sahadi, ioko’s CEO of North America. ®