KIT digital to Use Proceeds of $110.4 Million Public Offering to Expand Leading Market Share Positio
KIT digital expects to receive an aggregate of approximately $102.5 million in net proceeds from the offering after deducting underwriting discounts, commissions, legal fees, and certain deal-related expenses payable by the company. KIT digital plans to use the net proceeds of the offering primarily to acquire and invest in competitive and complementary businesses as part of its growth strategy. Accounting for this raise, the company's shares outstanding are approximately 33.2 million.
"We believe this funding reflects investor support of our stated goals and objectives," commented Kaleil Isaza Tuzman, chairman and CEO of KIT digital. "We aim to extend our industry leadership position from our current estimated 20-plus percent global market share to more than 50 percent within the next 24 months, which is a threshold where we believe economies of scale in sales, client delivery and R&D will be particularly powerful, and will maximize strategic value for the company. We plan to achieve this through a vanguard of organic growth complemented by highly selective, accretive acquisitions.
"Consistent with our historical approach to the marketplace, we continue to evaluate small acquisitions that add geographical and sales vertical reach in areas where we could be relatively stronger. However, we have also recently been considering more transformative acquisition opportunities, where we might be able to acquire a top competitor and significantly extend our market share in one action.
"The equity capital raise finalized today supports this possibility, and provides us with the necessary capital to achieve our near and mid-term objectives. We intend to fund our acquisition strategy going forward out of our treasury capital, from cash from operations, or with assumption of debt if or when appropriate, without the need to pursue additional equity raises.
"It's also important to note that as a management team, we have invested significant personal capital in KIT digital -- well north of $20 million and represented by more than four million shares of KIT digital common stock. Therefore, we are very dilution-sensitive, and believe we sit squarely on the side of all KIT digital shareholders. We are interested in acquisitions with clearly pre-identified synergies that are accretive and expand our cash-flow margin."
About KIT digital, Inc. KIT digital (NASDAQ: KITD) is a leading global provider of video asset management solutions (VAMS) for multi-screen IP-based delivery. KIT VX-one, the company's family of end-to-end software platform solutions, enables enterprise clients to acquire, manage and distribute video assets across the three screens of today's world: the personal computer, mobile device, and IPTV-enabled television set. The application of VX ranges from commercial video distribution to internal corporate deployments, including corporate communications, human resources, training, security and surveillance. KIT digital's client base includes nearly 1,300 customers across 40+ countries, including The Associated Press, BBC, Best Buy, Bristol-Myers Squibb, Disney-ABC, FedEx, General Motors, Google, Hewlett-Packard, Home Depot, IMG Worldwide, ESPN Star, MediaCorp, News Corp, Telefonica, Universal Studios, Verizon and Vodafone. KIT digital is headquartered in Prague, and maintains principal offices in Atlanta, Beijing, Boston, Buenos Aires, Cairo, Cambridge (UK), Chennai, Cologne, Delhi, Dubai, Kolkata, London, Los Angeles, Melbourne (Australia), Mumbai, New York, Singapore, Sofia (Bulgaria), Stockholm and Toronto. For additional information, visit www.kitd.com or follow the company on Twitter at www.twitter.com/KITdigital.
KIT digital Forward-Looking Statement This press release contains certain "forward-looking statements" related to the businesses of KIT digital, Inc., which can be identified by the use of forward-looking terminology such as "believes," "expects," "plans" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including uncertainties relating to product development and commercialization, the ability to obtain or maintain patent and other proprietary intellectual property protection, market acceptance, future capital requirements, regulatory actions or delays, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our public filings with the U.S. Securities and Exchange Commission. KIT digital is not under obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
KIT digital Contact:
Global Communications Manager
KIT digital Investor Relations Contact:
Matt Glover or Geoffrey Plank
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