US video platform Vimeo Inc. today announced an agreement to acquire Israeli video creation service Magisto. Terms of the deal were not disclosed but sources close to the deal estimate that Vimeo is paying $200 million.
With 100 million users, Magisto enables simple and intuitive short-form video creation for any medium. The combination of Magisto’s professional video creation capabilities with Vimeo’s suite of video hosting, distribution and monetization tools will extend Vimeo’s position as the industry’s most complete video SaaS solution.
Facebook and Magisto team on messenger platform
Vimeo CEO Anjali Sud said, “Social media has sparked an insatiable demand for video – audiences today expect high-quality video content from every business, regardless of size or budget. But we’ve found that most small businesses don’t have the tools, resources or expertise to meet this increased demand. Magisto’s proprietary technology enables cutting edge mobile apps and AI-powered editing tools which, combined with Vimeo’s scale and unmatched creator community, will empower more people to tell compelling stories through video.”
Following the acquisition, Vimeo and Magisto will work together to develop entirely new short-form video creation capabilities for the Vimeo platform, with the goal of helping any individual or business tell their stories with professionalism and ease. Magisto users will also be able to seamlessly access Vimeo’s full suite of workflow tools, so they can deploy their videos across platforms with a click of a button and measure performance all in one place.
Magisto founder and CEO Oren Boiman said, “Magisto guides entrepreneurs and small business owners through the video storytelling process, helping them use video effectively to grow their business and engage with audiences. We level the playing field so that any business can move fast and compete in today’s video-first world. We’re thrilled to join Vimeo’s industry-leading platform, and to power their vision to make professional quality video creation accessible to all.”
Magisto has over 75 employees with offices in California and ness Ziona, Israel and has raised $35 million since it was founded in 2009. Investors in Magisto included Sandisk, Samsung, Qualcomm, Ourcrowd, Western Digital Capital, Horizon and Mail.ru.
The transaction is expected to close by the end of the second quarter.
Vimeo Inc. was represented by Advs. David Chertok, Keren Sadeh, Omri Arouch and Daniel Colthof from Meitar Liquornik Geva Leshem Tal. Magisto was represented by Advs. Barak S. Platt, Daniel Damboritz and Josh Hauser from Yigal Arnon Co.
Published by Globes, Israel business news – en.globes.co.il – on April 15, 2019
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