York success story ioko sold for £50 million

The £33 million-turnover ioko, which employs up to 250 people at York Science Park, said it is hoping to expand its international reach when it is bought by global company KIT Digital.

The business said the development of more video-enabled devices, such as the iPad and innovations in mobile, connected TV and set-top box technology, presented a major business opportunity for the two companies as broadcasters all over the world innovate to manage their content.

Allan Dunn, finance director of ioko, said nothing would change within the business but the deal would enable ioko to take up more opportunities internationally.

“There’s a continued demand for ioko’s services in all corners of the globe,” he said.

“We realised we were missing out on opportunities because we have not got the ability to go after all of them.”

He said the company would retain the name ioko and it would create further opportunities for staff.

“We have no intentions to change anything at all in the business. But it gives the staff a fantastic opportunity to work on a global basis and it’s been very positively received.”

Ioko was started at York Science Park in 1995 by David Griffiths and Mark Christie with £100,000 of private investment. It now employs about 380 people in offices in San Diego, London, York, Malaga and Sydney.

The acquisition values ioko at about £65.9 million in cash and shares, including deferred performance-based payments over two and a half years, although it will not pay so much up front because of about £17.2 million of cash and working capital expected to be included in ioko’s balance sheet.

KIT Digital, headquartered in Prague, employs 750 people in 25 offices around the world.

KIT also agreed to purchase Milan-based Polymedia in March and it said it expected the two acquisitions to boost its revenues in 2011 to £210 million, 98 per cent higher than in 2010.