Aimed at $ 2 billion

Cultura, a company that specializes in corporate video management, is entering high gear ahead of its first New York Stock Exchange. The company has published prospectus An updated that reveals that the company wants to issue at a value of $ 2 billion, during which it will also include a sale offer by existing shareholders.

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The company will sell a total of 23.5 million shares at a price of about $ 15 per share. Of that number of shares, 17.4 million will be new shares of the company that will inject about $ 260 million into the fund and an additional 6.1 million shares will be sold as part of a sale offer of almost $ 100 million. Following the IPO, the company will have 123 million shares and will begin trading on NASDAQ under the KLTR symbol. Kaltura employs 600 people, half of them in its offices in Ramat Gan.

Shareholders exercise

The biggest realizer in the sale offer is Ron Yekutiel, one of the founders of Kaltura who serves as chairman and CEO. According to the prospectus, it is supposed to sell one million shares and thus meet with $ 15 million according to the estimated share price in the offering.

Yekutiel received a salary package at a cost of $ 22.3 million in 2020, which consists of an annual salary of $ 390,000, a cash bonus of $ 330 and another option allocation of $ 21.5 million. dollar. After the offering and sale, it will remain with a 5.1% holding in the company’s shares compared to 7% today.

Michal Tzur, who is also a member of the founding group and serves as president and VP of marketing Kultura, will sell 602,000 shares with an estimated value of $ 9 million and will be reduced to a 3.7% holding in the company. One thousand dollars, a bonus of 223 thousand dollars and an allotment of options for $ 5.4 million.

Kaltura’s two other founders, Shai David who serves as a director and Eran with them, will sell smaller shares. David will sell 252,000 shares for about $ 4 million and will remain with 3.9% of the company, while with them he will sell 262,000 shares and go down to a 3.8% holding in the company.

The 406 POINT fund, the largest shareholder in Kaltura, will sell 880,000 shares and decrease its holding to 13.7%. Another major shareholder is Nexus India Fund which will sell 802,000 shares and stay with a package of 12.4%. Other entities that will be sold in the offering are Intel Capital, the Avalon Fund, a fund of the Goldman Sachs Investment Bank and a venture capital fund of Nokia.

Michal Tzur and Ron Yekutian. The founders are realizing an IPO Photo: Micha Loveton

The financial data

In terms of the spat issues that are sweeping Wall Street and Israeli technology companies, this is a relatively modest value. However, the performance that Kaltura revealed in her first prospectus also surprised many, and not for the better. The company crossed the $ 100 million revenue mark in 2020 alone, then reported $ 104 million in the top tier. These revenues reflect a growth rate of 23%.

In addition, Kaltura is still far from profitable with an operating loss of $ 8.5 million in 2020 compared to 2.7 in 2019. On the bottom line, Cultura posted an extraordinary loss of $ 58 million compared to a loss of $ 15.5 million in 2019. The high loss last year was due to a $ 41.5 million financial expense on updating the fair value of options in the company. Welfare-EBITDA Of Culture, which does not include taxes and financial reductions, totaled $ 4.3 million last year, similar to 2019. In previous years culture has not been profitable even in terms of EBIDTA. At the end of 2020, the company had cash balances of $ 27 million and the accumulated loss stands at a quarter of a billion dollars.

Kaltura operates in two main areas: the media sector and the education sector and organizations. The prospectus shows that the field of education and organizations is the dominant field in terms of sales, and it generated revenues of about $ 80.4 million. In the field of media, the company recorded revenue of about $ 40 million. The company’s R & D expenses amounted to $ 29.5 million in 2020 – an increase of about 22% compared to 2019. Among the company’s customers: Oracle, Berlitz, Wells Fargo, Bloomberg, Vodafone and more.

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