Seattle-based video management company Panopto on Thursday submitted its third acquisition proposal to the board of Kaltura Inc. (Nasdaq: KLTR), a New York City-based competitor.
Panopto and its backer, private equity firm K1 Investment Management, are offering $3 per share and valuing Kaltura at $383 million. Kaltura's stock closed at $2.51 on Friday. Panopto's previous two proposals, submitted on June 5 and July 10, were rejected by Kaltura's board.
"While we are disappointed that the board has to date decided to reject our revised proposal without engaging in a meaningful dialogue, we remain committed to pursuing a transaction between our two businesses," Panopto wrote in its proposal letter to Kaltura's board. "We continue to believe that Kaltura is an attractive business that, coupled with Panopto, would create an impressive player in the video industry."
In its proposal letter, Panopto said its $3 per share offer is an even better deal than it initially seems, as K1 has been buying shares over the past 60 days and driving up Kaltura's stock price. Panopto said K1 bought over 4.8 million shares between July 7 and July 25. Kaltura's stock closed at $1.72 on July 6. According to a filing with the Securities and Exchange Commission, K1 now owns a 6.9% stake in Kaltura.
Panopto, founded in 2007, allows clients to record, upload, host, livestream and search videos. Its clients include corporate brands like Nike and General Electric, as well as universities like the University of Washington and the University of Missouri. Panopto announced its investment from K1 in April 2021 and followed it up with the acquisition of Syracuse, New York-based competitor Ensemble Video, announced the next day.
Eric Burns, who co-founded the company, led Panopto as CEO since 2015. Tobi Hartmann took over as CEO in May, and Burns stepped into a strategic adviser role. On Hartmann's LinkedIn page, he calls himself a "non-executive board member and P/E advisor" to private equity-funded companies.
Kaltura, founded in 2006, allows clients to manage videos, host webinars and create virtual events. Its clients include Deloitte, Oracle and Bosch. The company went public on the Nasdaq in July 2021, and its stock price has fallen more than 75% since then.
"We believe video is the new document and is driving the future of learning, work and connectivity, globally. The Kaltura management team and its employees have built an impressive business and will be an important part of the future of the combined business," Panopto wrote in its acquisition proposal.
