Digital video tech provider KIT digital spent about $21 million this year acquiring companies like The Feedroom (which previous investors had put over $60 million into) and Germany’s Nunet. The publicly listed company now says it will be “retiring” both brands next week after successful consolidation and integration of their IP and resources, and concentrate all marketing efforts on the KIT digital brand.
The company has also shared 2009 expectations and milestones, as well as its strategic objectives for next year.
KIT digital expects 2009 revenue of approximately $46 million with an operating EBITDA margin in excess of 10% for this year. According to Kaleil Isaza Tuzman, chairman and chief executive officer of KIT digital, all operational targets have been achieved, including reaching free cash flow-positive status and listing on the NASDAQ Global Market (KITD).
The company board and management team have defined four strategic priorities for 2010: complete the integration of Nunet and The FeedRoom, roll out its new VX2 platform on a global scale, work on improving its corporate marketing and visibility and expand in the BRIC markets (Brazil, Russia, India, and China). KIT digital suggests it might be making some strategic acquisitions in the regions for reaching the latter objective.
Formerly called Roo TV, KIT digital raised $20 million in 2008 and went public this year to little fanfare, although it is clearly positioned right in the center of a growth market (see this Seeking Alpha profile for more). The company has made 5 acquisitions to date (The Feedroom, Narrowstep, Visual Connection, Nunet, Morpheum and Kamera).
Frankly, it’s quietly turning into a very attractive acquisition target of its own.