Leading digital media and technology company Kitara Media announced it has acquired Health Guru Media, the operator of Healthguru.com – a leading online health video resource site for consumers.
According to the acquisition agreement, Health Guru Media security holders will be given an aggregate of 18 million shares of Kitara Media stock. Robert Regular will continue in his capacity as CEO of Kitara Media, and Joshua Silberstein, CEO of Health Guru Media, will take over the role of president. The two newly joined companies will move forward in accelerating the growth of video advertising with custom video content, at the same time advancing video technology offerings with an expanded resource team.
This acquisition will establish Kitara Media as a company with an estimated $50 million in yearly revenues. The company is expected to be EBITDA positive for the fiscal year ending Dec. 31, 2014. In a private offering at 50 cents, Kitara Media raised $2 million from qualified investors as part of the transaction. The raised funds will supply working capital to quickly grow the newly merged company. Kitara Media has around 83 million shares outstanding and approximately 9 million stock options outstanding, as of the closing of the acquisition.
This acquisition will facilitate the delivery of almost 500 million video advertising views per month. The combination of Kitara Media’s technology platform with Health Guru Media’s direct sales and content expertise provides a focus for video growth in mobile and desktop, leveraging a premium video offering with Health Guru Media’s proprietary content syndication technology and Kitara Media’s Propel+ video ad platform.
For more information, visit www.kitaramedia.com
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