As expected, the board of directors of Kaltura (Nasdaq: KLTR) has rejected the hostile takeover bid by rival company Panopto, a private company owned by K1 Investment Management, LLC. At the end of last week, Israeli company Kaltura, a developer of video solutions, announced that “after a careful and thorough review conducted in consultation with its independent financial and legal advisors”, the board unanimously decided that Panopto’s bid “significantly undervalues Kaltura and therefore is not in the best interests of shareholders.”
Kaltura develops and sells video management systems for enterprises and media companies. Panopto provides communications software solutions for universities and enterprises for recording lectures, screening video, and so forth.
The takeover bid by Panopto was backed by K1 Investment Management, which holds 6.9% of Kaltura. In late July, Panopto offered to buy all the shares in Kaltura for $3 each, valuing the company at $383 million. The offer represented a 27% premium on Kaltura’s share price at the time, but is 70% below the share price in the company’s IPO in July 2021. On Friday, Kaltura closed at $2.44, giving it a market cap of $320 million.
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