KIT digital Acquires KickApps, Kewego and Kyte, Signaling Era of Video-Driven Social Media

Summary of acquisition benefits for KIT digital:

• Acceleration of KIT's product roadmap by 12-18 months by adding several key technology and product features, including advanced social media tools (KickApps), superior mobile publishing and software development kit (SDK) features (Kyte), and behind-the-firewall and digital signage capabilities for enterprise clients (Kewego);
• KickApps' applications and development tools deepen KIT's ability to integrate new technology assets and form the foundation for accelerated client deployments;
• Support and extension of KIT's three major client verticals, adding particular expertise around transportation, automotive, manufacturing and fan-based media assets (such as sports teams and celebrity sites);
• Strong management additions to KIT's global team, including R&D and business development hubs in San Francisco and New York;
• Aggregate transaction accretive on both a trailing revenue and EBITDA multiple basis;
• Combined 2010 revenues of acquired companies is estimated to have been approximately US$25 million, the vast majority of which was derived from recurring licenses in a software-as-a-service (SaaS) business model;
• The acquired companies have been growing between 20-35% per year historically on a standalone basis;
• Quality new shareholders, including the appointment to the KIT digital board of Santo Politi, founder and general partner of Spark Capital, the venture capital firm behind Twitter, Boxee and thePlatform.

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