“This acquisition was agreed to and referenced in
communications prior to the management transition that took place in March. Our
objectives over the last few weeks have been to ensure that the acquisition is
immediately accretive on a cash-flow basis and that we are positioned to
leverage Hyro’s software development and deployment capability on major
projects in the region,” said CEO Barak Bar-Cohen.
Currently, Hyro employs 115 staff in Australia and
Thailand supporting tier one operators throughout the region, such as Foxtel
and Telstra. The agreement was signed on April 21, 2012 with the closing of the
transaction subject to Hyro shareholder approval at the Hyro Annual General
Meeting in first week of June 2012.
Revenue acquired in the acquisition of Hyro based on the
2011 year will be approximately $20 million. The company will have at least $2
million in cash on the balance sheet at closing and the transaction is expected
to be immediately accretive on an earnings and cash flow basis.
KIT digital will elect to pay consideration in KIT
digital common stock of approximately 2.1 million shares, totaling
approximately US$14.5 million based on the April 20, 2012 closing price.
KIT digital signs contract extension with Sky Racing to drive
IP-delivered video service
A few days back, KIT digital signed a contract extension
with Sky Racing to drive the Australian broadcaster’s live and on-demand
IP-delivered video service.
