KIT digital Closes Previously Announced Acquisition of Hyro Assets
PRAGUE, CZECH REPUBLIC and MELBOURNE, AUSTRALIA, Jun 26, 2012 (MARKETWIRE via COMTEX) --KIT digital, Inc. (NASDAQ: KITD), a leading video management software and services company, today announced that it has closed its previously announced acquisition of assets from Hyro Limited ("Hyro") (ASX: HYO), the Australia-based digital solutions company. Shareholders voted to approve the transaction at Hyro's Annual Meeting on Friday, June 15, in Southbank, Victoria, and KIT digital took operational control of the assets on Friday, June 22.
The acquired Hyro assets generated revenue of approximately AUD$22 million in 2011.
KIT digital has elected to pay consideration of AUD$2.0 million in cash and 1.84 million shares of KIT digital common stock, subject to adjustment under certain conditions. The cash component of the acquisition price is offset by an equivalent amount of restricted and unrestricted cash on the Hyro balance sheet.
"We are pleased that Hyro shareholders voted to approve this transaction," said Barak Bar-Cohen, CEO of KIT digital. "We expect the combination of our respective video software and service offerings to unlock a significant commercial opportunity in the Asia-Pacific region (APAC), and to further benefit our existing tier-one customer base."
Nicole Dixon, Managing Director of Asia-Pacific for KIT digital, added: "APAC is an area of strategic expansion for us. We believe macro trends in the region will continue driving increased demand for the KIT Video Platform, our cloud-based video asset management system, from network operators and media companies throughout APAC, particularly in the rapidly expanding emerging markets of Southeast Asia. We seek to leverage Hyro's resources in support of current and future deployments there and across the wider region, where the skilled and experienced resources of Hyro will assist in fulfilling the needs of our combined pipeline."
About Hyro Limited
Hyro (ASX: HYO) 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 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 management software 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.
Important Cautions Regarding Forward-Looking Statements
This press release contains certain "forward-looking statements" within the meaning of the Federal securities laws related to the businesses of KIT digital, Inc., which can be identified by the use of forward-looking terminology, such as "may," "believes," "estimates," "expects," "intends," "anticipates," "will continue," "projects," "plans" and variations of such words or similar expressions that do not relate to historical matters, but their absence does not mean that the statement is not forward-looking. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risk, uncertainties and other factors which are, in some case, beyond our control and could materially affect results, performance or achievements. Statements in this announcement that are forward-looking include, but are not limited to, statements made concerning the benefits to our tier-one customer base, and the planned use of resources acquired as part of the transaction. Such forward-looking statements involve known and unknown risks and uncertainties, including uncertainties relating to product development and commercialization, integration of acquired businesses, the ability to obtain or maintain patent and other proprietary intellectual property protection, market acceptance, future capital requirements, regulatory actions or delays, competition in general and other factors that may cause actual results to be materially different from those described herein. Certain of these risks and uncertainties are or will be described in greater detail in our public filings with the U.S. Securities and Exchange Commission. Except as required by U.S. federal securities laws, KIT digital is not under obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
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SOURCE: KIT digital, Inc.