TheFeedRoom, the grandaddy of online video and streaming services companies, has been acquired by international video tech provider KIT Digital, for about $10 million, all in stock. FeedRoom has been around since 1999, and has raised at least $61 million since launching. Also, KIT is announcing another acquisition: German video provider Nunet AG, which it bought by international talent agency and production company IMG, for about $11.1 million. Nunet is primarily focused on mobile video delivery, and has clients such as SFR, Vodafone (NYSE: VOD), Discovery Channel, and MTV Networks (NYSE: VIA), among others. The total price paid for the two companies was about $20.9 million, of which $9.8 million was paid in stock, $7.9 million was paid in cash and $3.3 million of debt was assumed in the form of a convertible promissory note. Release.
As part of the FeedRoom deal, the company’s controlling shareholders-NewSpring Ventures, BEV Capital and Velocity Equity Partners – invested $4.0 million in KIT Digital common shares, at a price of $11 per share, through the conversion of The FeedRoom Series F Preferred Shares purchased at closing.
KIT says the two acquisitions are expected to add $17.5 million of current, annualized revenues, and more than $4.5 million in annualized EBITDA. In Jan, KIT