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Online video services provider KIT Digital is paying $91.4 million for 100 percent of the stock in cloud-based content manager ioko365. This is KIT’s fifth acquisition this year and given that’s been on a fairly constant shopping spree for the last two years, it’s probably not the last.
The purchase of ioko, which has offices in of San Diego, California and London, is meant to help Kit manage its large-scale IP Video rollouts in the U.S. and the U.K. from broadband providers such as AT&T (NYSE: T) U-verse, BSkyB (NYSE: BSY) SkyPlayer, BBC iPlayer, Univision’s Digital Media Platform and Disney (NYSE: DIS) & Sony’s FilmFlex. It also built versions of Channel 4’s 4oD, ITV.com’s ITV (LSE: ITV) Player and the original technology for Project Kangaroo, the VOD service whose launch was prohibited on competition grounds but later rescued by Arqiva with which to build SeeSaw.
At the start of the year, the Prague, Czech Republic-based company paid $77.2 million to buy three companies, KickApps, Kewego and Kyte. And just last month, KIT spent $34.4 million to acquire Polymedia from Italian owner TXT e-solution.
Along with analytics, online video has been one of the hot segments for M&A and funding activity, even during the worst moments of the recession. While there have been big deals, such as Google/YouTube’s purchase of Next New Networks, there are still a lot of smaller companies in the space waiting for either more funding or out-right acquisitions as viewership and ad dollars continue to rise. Release