Online video management software company KIT digital has agreed to acquire privately-held Benchmark Broadcast Systems, based in Singapore, for approximately $10 million.
KIT digital’s chairman and CEO, Kaleil Isaza Tuzman, in a statement says they’ve been working on the acquisition for quite some time, and that the deal is testament to the company’s ambition to become leader in video asset management in the BRIC markets.
Benchmark is a video asset management provider and broadcast video systems integrator with six regional offices throughout Asia, where it employs about 100 people.
The company serves clients in 12+ countries and expects to generate at least $10 million in revenues during the next 12 months. Its clients include companies like CNBC, Express News, ESPN Star, ETV, MediaCorp and NDTV.
In consideration for 100% of Benchmark’s shares, the transaction includes guaranteed payments of approximately $9.5 million directly to the company over time ($4.5 million in cash plus $5 million in KIT digital common stock) plus approximately $1.1 million paid to employees over the next two years.
The transaction also includes corporate performance-based contingent considerations at the first and second anniversary of the transaction.
KIT digital has acquired quite a number of smaller rivals in a variety of countries so far, most recently picking up competitor Multicast Media for net consideration of approximately $18 million.
The company has itself raised $20 million in venture funding from KCP Capital and now trades on NASDAQ under the KITD symbol.
