Online video provider KIT Digital on Monday agreed to buy Singapore-based Benchmark Broadcast Systems for $9.5 million. Benchmark claims to provide video asset management services, and integrate broadcast video systems, for clients in over 12 countries through six regional offices throughout Asia. In addition, the privately held company expects to generate at least $10 million in revenue over the next 12 months.
"This acquisition demonstrates our commitment to the Asian markets," said KIT digital chairman and CEO Kaleil Isaza Tuzman. "It also represents an extension to our existing IPTV systems integration capabilities -- which support our larger-scale software implementations with broadcasters and network operators."
The deal follows KIT's agreement to buy Multicast Media Technologies for about $18 million in cash and shares back in March. Multicast was expected to complement KIT's North American client base, as well as its capabilities in serving video to the 'three screens' of the mobile device, browser and IP-enabled television.
Last summer, KIT began trading on the NASDAQ Global Market exchange. The move, Tuzman said at the time, "puts us in a position to execute on selected, accretive acquisitions." Then known as Roo Group, KIT digital was taken over by Tuzman -- a former JumpTV executive -- in December 2007.
The name change to KIT -- an acronym that stands for "Knowledge, Imagination and Technology" -- is intended to reflect changes under Tuzman aimed at refocusing on the company's core business of providing video services to companies across the entertainment, financial, automotive and other industries.
KIT allows clients to publish, manage and distribute digital video content, as well as tap its syndicated video channels and syndicated videos for content. Tuzman previously said a key change for the company would be to focus on delivering live streams instead of video-on-demand for third-party sites. KIT presently provides software to more than 600 clients including Hewlett-Packard Co. and Vodafone Group Plc. The company moved its headquarters to Prague from Dubai last year.
Benchmark's clients include Astro, CNBC, Express News, ESPN Star, ETV, MediaCorp, NDTV, Reliance Mediaworks, Sahara, TV9, VTV and ZeeTV.