KIT Digital is continuing its buying spree, saying this morning that it’s acquired video management provider and systems integrator Benchmark Broadcast Systems for $9.5 million in cash and stock. The move will see KIT Digital greatly expand its operations in Asia, where Benchmark has clients in 12 local markets.
In addition to its home office in Singapore, Benchmark has offices in Beijing, Chennai, Mumbai and New Delhi. KIT will be able to leverage Benchmark’s existing relationships — its customers include CNBC, ESPN Star, ETV, MediaCorp and NDTV, among others — to cross-sell its VX-one video management platform in Asia-Pac.
The deal includes guaranteed payment of $9.5 million consisting of $4.5 million in cash and an additional $5 million in KIT Digital common stock. It also includes a potential $1.1 million to be paid to Benchmark employees over the next two years, contingent on performance considerations. KIT Digital expects Benchmark to generate $10 million in sales over the next 12 months, and says the acquisition will be immediately accretive on a cash-flow, EBITDA and net profit basis.
KIT Digital has been on a massive buying spree over the past two years, spending millions to acquire the technology and customers of competitors like Multicast Media, The Feedroom, Nunet AG and Narrowstep. As a result, KIT said it expects to report fiscal 2010 revenue of more than $75 million, a 60 percent increase over 2009.
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