Online video services provider KIT Digital is continuing to roll-up other firms in its market. The Prague, Czech Republic-based company is paying $77.2 million to purchase three companies, KickApps, Kewego and Kyte, in moves it says will help it become a “one-stop shop” for corporations’ video needs.
Two of the companies are squarely in the online video management space: Kewego, which reported $10.2 million in sales last year, provides white label online video tools to European companies, including telecom firm Orange and sports site L’Equipe. The company has more than 400 clients. Kyte, meanwhile, provides online video services to more than 100 companies, including CBS (NYSE: CBS), Fox News, and Walt Disney (NYSE: DIS). It’s especially well-known for its mobile video platform and its backers, include Telefonica (NYSE: TEF), TeliaSonera and Nokia (NYSE: NOK).
The third company, KickApps, lets companies add a number of white-label features to their sites, including social networks as well as customized video players. Its clients include major media firms, such as NBC Universal (NYSE: GE), Viacom (NYSE: VIA), and Hearst, and it had more than $12 million in revenue in 2010. Three years ago, AOL (NYSE: AOL) reportedly considered buying the company for as much as $90 million.
All three companies were heavily funded (KickApps had raised $30 million, while Kyte and Kewego had both raised more than $20 million), which suggests that their backers are getting at best their money back. KIT Digital has bought companies at discounts to what they raised before; in October 2009, for instance, it purchased TheFeedRoom for $10 million in stock. That company had raised more than $61 million.
As part of the trio of acquisitions, KIT Digital is adding a number of new executives. Among them: KickApps CEO Alex Blum will now be the company’s chief operating officer, while Kewego CEO Michel Meyer is now SVP of product management. There are more details in the announcement here.