Showing posts with label IMG Worldwide. Show all posts
Showing posts with label IMG Worldwide. Show all posts

Thursday, October 8, 2009

DAM Acquisitions Continue: The FeedRoom, Nunet Acquired by KIT Digital

The Digital Asset Management Acquisitions continue to occur.

In a move that appears to be both a technology and customer rollup, KIT Digital a publicly traded company on NASDAQ (Symbol: KITD) acquired The FeedRoom for $9.8M and Nunet (from IMG Worldwide) for $11.1M totaling around $20M. KIT Digital provides end-to-end video IP technology and services, and with these acquisitions expands that capabilities with broader video and business oriented DAM offerings. The purchase of The FeedRoom is
essentially equivalent to thier last round of funding. As part of the transaction, The FeedRoom's controlling shareholders -- NewSpring Ventures, BEV Capital and Velocity Equity Partners -- invested $4.0 million in KIT digital common shares, at a price of $11 per share, through the conversion of The FeedRoom Series F Preferred Shares purchased at closing.

The FeedRoom, a provider of Video and traditional digital asset management (DAM) solutions had acquired ClearStory Systems in December of 2008. At the time ClearStory's customers included Bristol-Meyers Squibb, National Geographic, and several others. I suspect that there would be concern from these large customers about the stability of their DAM vendor.

I'm not as familiar with Nunet, but if it's what I believe it to be, it is video asset packaging and distribution technology that was developed many years ago at IMG Worldwide to support many of their clients with establishing their brands and creating appealing web sites that utilized video. This would mark an exit for IMG Worldwide from the DAM space -- which always seemed to me as a sideline business.