* Sets sights on BRIC expansion, Asian operation
* Sees company's earning growth outpacing market
By Jason Hovet
PRAGUE, March 12 (Reuters) - Video technology provider KIT
digital <KITDsp.PR> <KITD.O> is close to completing a new
acquisition after earmarking around $20 million from a share
offering for purchases this year, officials said on Friday.
The Nasdaq and Prague-listed company which provides IP-based
video services for clients including Disney <DIS.N>, General
Motors [] and the U.S. Defense Department, raised roughly
$45.5 million from two stock offerings this quarter.
Chief Executive, Kaleil Isaza Tuzman told Reuters he was
confident the company would make an acquisition in the first
quarter and another by the third quarter.
"We are, in our view, close to completing an acquisition,"
he said in an interview with other company officials at their
Prague headquarters. He declined to give more detail.
It estimated it had $47 million in revenue last year, double
the 2008 level and has forecast at least a 60 percent rise this
year to $75 million. Its results for 2009 are due on March 30.
The group first sold shares on the Nasdaq in August, raising
a net $22.2 million. It placed another 3.33 million new shares
with U.S. investors at $10.50 each in January.
It also dual-listed shares in Prague, but decided not to go
ahead with an offer of new shares in Europe. Tuzman said it was
because investors had been asking for a discount since the
unregistered shares came with restrictions. []
The company closed the sale of the another 1.54 million
shares at $9.73 each in the United States this week, and Tuzman
said all major institutional investors from the first offer took
part. Proceeds from the second sale will go to buying back
warrants, he said.
KIT digital's Nasdaq shares closed on Thursday at $10.89,
giving it a market capitalisation of $150 million, according to
Reuters data.
KIT digital President Gavin Campion said the company would
set aside around $20 million from proceeds in the January sale
for acquisitions this year.
The company bought Cologne-based Nunet and New York-based
The FeedRoom last year, which it has said in presentations added
more than $17 million in annualised revenue.
KIT digital has offices in North America, Europe, Argentina,
Egypt, Dubai, Singapore and Australia. It aims to expand in the
so-called BRIC economies of Brazil, Russia, India and China this
year and is also considering acquisitions in Asia.
"We are very keen to get an operation... in Asia," Chief
Financial Officer Robin Smyth said.
KIT digital cites estimates that global online video-related
revenue could rise to $10 billion in 2012 from $1.7 billion in
2007. The company declined to comment on guidance past 2010, but
said it expected to grow faster than the overall market pace.
(Editing by Greg Mahlich)
