KIT Digital Buys Polymedia For $34.4 Million

KIT Digital‘s long (and expensive) shopping spree continues: The online video services provider is paying $34.4 million to purchase Polymedia from Italian owner TXT e-solutions. KIT Digital says Polymedia counts major European telecom operators and media firms including Telecom Italia, Sky Germany, and Ericcson among its customers.

Its flagship product is Polymedia Video, which it describes as “a complete software suite allowing to manage the whole life?cycle of rich contents and video: acquisition from heterogeneous sources, multilayer archiving and searching, multimedia editing, video transcoding and DRM protection, publishing on a variety of channels and devices.”

KIT Digital is paying $17.2 million in stock and $17.2 million in cash for Polymedia, which is profitable and generates about $19 million in annual sales. The deal comes just over a month after it paid $77.2 million to purchase three companies, KickApps, Kewego and Kyte, in moves it said would help it become a “one-stop shop” for corporations’ video needs.

The company is also on the verge of another major purchase. TechCrunch points out that KIT Digital is saying that the “majority of the proceeds” from a December 2010 equity offering are “dedicated to support a prospective larger acquisition in the very near future.” That offering brought in $110.4 million.