U.S. private equity firm K1 Investment Management LLC announces it has improved its offer to buy Israeli video cloud platform Kaltura (Nasdaq: KLTR). The revised offer is $3 per share, which values Kaltura at $383 million. If K1’s bid is successful, K1 plans to merge Kaltura with US video platform company Panopto, which it already owns.
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The latest offer reflects a 27.1% premium to Kaltura’s closing price on Wall Street yesterday and is 44% above the average share price over the past 30 days. Kaltura’s share price is up 6.36% after hours trading.
K1 Investment Management announces that it has already acquired a 6.9% stake in Kaltura.
Kaltura provides video management systems for businesses, media and universities. The company was founded in 2006 by CEO Ron Yekutiel, Dr. Michal Tsur, Dr. Shay David and Eran Eitam.
In July 2021, Kaltura completed its Nasdaq IPO on the second attempt at a $1.24 billion valuation and raised $150 million. At the time of the IPO, Kaltura’s shares were worth $10 each, about average of what the company was asking for.
Initially, the company’s share price rose, and at its peak, Kaltura had a market capitalization of $1.7 billion. But the market slump quickly caught up with Kaltura, which at one point lost 85% of its value since the IPO, and was worth just $190 million. At the end of the first quarter of 2022, Kaltura has cash of $120 million, or 63% of its value.
The sharp decline in the company’s share price also reflects disappointment in the company’s financial results. So, for example last November, Kaltura indicated that the annual EBITDA for 2021 would be negative after having been positive in 2020 and that it was somewhat behind in its plans to expand its workforce.
Kaltura’s 2021 results fell short of analysts’ expectations and in the first quarter of 2022 the company forecast annual growth of 5% to 8%, following a 37% annual growth in 2021. The company forecasts negative EBITDA in 2022 from 27 to 32 million dollars.
Published by Globes, Israel business news – en.globes.co.il – on July 29, 2022.
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