The shakeout of the online video services space continues. KIT Digital, the online video tools player now based in Prague, has bought rival video player Multicast, for about $18 million, a week after it announced closing a $15 million equity offering. Of the $18 million KIT-Multicast deal, $4.9 million is in cash and the rest is in 1.3 million shares of KIT digital common stock, plus the assumption of approximately $4.6 million in long-term liabilities.
Multicast, based in Atlanta, hosts live as well as on-demand video events and focuses primarily on corporate audiences. It says it has about $12 million in annualized recurring licensing fees for its IP video management software, with other additional revenues related to professional services.