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KIT digital agrees to fully accretive acquisition of Hyro Limited

KIT digital has signed a definitive agreement to acquire Hyro Ltd., headquartered in Melbourne, Australia. The company previously signaled this acquisition in investor and analyst conference calls. Revenue acquired in the acquisition of Hyro based on the 2011 year will be approximately $20M. The company will have at least $2M 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 2.1M shares, totaling approximately $14.5M based on the April 20 closing price. 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.