US video platform Panopto reports that it has improved its bid to buy Israeli video cloud platform Kaltura (Nasdaq: KLTR). The revised bid is for $3 per share, which values Kaltura at $383 million.
The latest bid reflects a 27.1% premium on Kaltura’s closing price on Wall Street yesterday and is 44% above the share’s average price over the past 30 days. Kaltura’s share price is up 12.3% on Nasdaq today.
K1 Investment Management, which owns Panopto, has already built a 6.9% stake in Kaltura.
Kaltura provides video management systems for businesses, media organizations 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 is Nasdaq IPO at the second attempt at a valuation of $1.24 billion and raised $150 million. At the time of the IPO, Kaltura’s shares were worth $10 each, in the mid-range of what the company was asking.
Initially, the company’s share price rose, and at its peak Kaltura had a market cap of $1.7 billion. But the market slump soon caught up with Kaltura, which at one point lost 85% of its value since the IPO, and was worth only $190 million. At the end of the first quarter of 2022, Kaltura has cash of $120 million, representing 63% of its value.
The large fall in the company’s share price also reflected disappointment in the company’s financial results. So for example last November, Kaltura reported that annual EBITDA for 2021 would be negative after it was positive in 2020 and that it was somewhat behind in plans to expand its workforce.
Kaltura’s 2021 results fell short of analysts’ expectations and in the first quarter of 2022 the company predicted annual growth of 5%-8%, after annual growth of 37% in 2021. The company sees negative EBITDA in 2022 of $27-32 million.
Published by Globes, Israel business news – en.globes.co.il – on July 29 2022.
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