Kit Digital, a provider of software for video-on-demand services, agreed to buy the live event broadcaster to expand its presence in the US. KIT will pay $4.9m in cash and provide 1.3 million of its shares plus the assumption of some $4.6m in long-term liabilities.
KIT chief executive Kaleil Isaza Tuzman said "MMT substantially expands KIT's customer base in the US and its capabilities to stream video". The company expects the acquisition to be "immediately accretive on both a revenue and cash flow multiple basis," he said.
Atlanta-based MMT provides a platform that can broadcast 50,000 live events annually by providing services to government, non-profits, faith organizations and corporate clients. Founded in 2001, its software and services fetch $12m in recurring license fees per annum. Prague-based KIT provides software to 600 clients including Hewlett-Packard and Vodafone. The company employs about 300 people in 14 offices in countries such as Germany, the US and Australia.