KIT digital Fuels Growth in Asia-Pacific
PRAGUE, CZECH REPUBLIC and MELBOURNE, AUSTRALIA, Apr 23, 2012 (MARKETWIRE via COMTEX) --KIT digital, Inc. (NASDAQ: KITD), a leading video technology and services company, has signed a definitive agreement to acquire Hyro Limited ("Hyro") (ASX: HYO), a digital solutions company that provides enterprise grade technology, systems integration, software and managed services solutions, headquartered in Melbourne, Australia. The company previously signaled this acquisition in investor and analyst conference calls.
Revenue acquired in the acquisition of Hyro based on the 2011 year will be approximately $20 million. The company will have at least $2 million in cash on the balance sheet at closing and the transaction is expected to be immediately accretive on an earnings and cash flow basis. KIT digital will elect to pay consideration in KIT digital common stock of approximately 2.1 million shares, totaling approximately US$14.5 million based on the April 20, 2012 closing price.
KIT digital expects to leverage Hyro resources in support of current and future deployments across Asia-Pacific, whereby skilled resources are required to fulfill both existing contracts and future growth, based on the sales pipelines of both companies. Currently, Hyro employs 115 staff in Australia and Thailand supporting tier one operators throughout the region, such as Foxtel and Telstra.
"This acquisition was agreed to and referenced in communications prior to the management transition that took place in March," said CEO Barak Bar-Cohen. "Our objectives over the last few weeks have been to ensure that the acquisition is immediately accretive on a cash-flow basis and that we are positioned to leverage Hyro's software development and deployment capability on major projects in the region. I'm very confident we have achieved these objectives."
The agreement was signed on April 21, 2012 with the closing of the transaction subject to Hyro shareholder approval at the Hyro Annual General Meeting in first week of June 2012.
About Hyro Limited Hyro is a leading Australian technology company that delivers enterprise level online and mobile solutions to the telecommunications, broadcast, retail, finance and government sectors. The company provides strategy, development, systems integration and managed services across a range of digital content technologies and solutions including significant experience in content, video and live streaming across multiple devices. Hyro has offices in Melbourne, Sydney, Brisbane and Bangkok.
About KIT digital, Inc.
KIT digital (NASDAQ: KITD) is a leading video technology and services company. The KIT Video Platform, the company's cloud-based video asset management system, enables enterprise, media & entertainment and network operator clients to produce, manage and deliver multiscreen socially-enabled video experiences to audiences wherever they are. KIT digital services nearly 2,500 clients in 50+ countries including some of the world's biggest brands, such as Airbus, The Associated Press, AT&T, BBC, BSkyB, Disney-ABC, Google, HP, Mediaset, MTV, News Corp, RCS MediaGroup, Sky Deutschland, Sky Italia, Telecom Argentina, Telecom Italia, Telefonica O2, Universal Studios, Verizon, Vodafone and Volkswagen. KIT digital maintains executive offices in New York and its operational headquarters in Prague, Czech Republic, with offices in 21 countries around the world. Visit the company at www.kitd.com or follow on Twitter at www.twitter.com/KITdigital.
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SOURCE: KIT digital, Inc.