In June, we reported that trouble was brewing at KIT Digital with activist investors as a result of which the company even announced it was open to acquisition. Now KIT has made one of its investors, Peter Heiland, CEO of the company. Former CEO Kaleil Isaza Tuzman resigned earlier this year citing differences with the […]
In June, we reported that trouble was brewing at KIT Digital with activist investors as a result of which the company even announced it was open to acquisition. Now KIT has made one of its investors, Peter Heiland, CEO of the company.
Former CEO Kaleil Isaza Tuzman resigned earlier this year citing differences with the companys board of directors over strategic sales issues. He was replaced by Barak Bar-Cohen in April 2012. Heiland, managing director of JEC Capital Partners will now head the company.
Previously, JEC Capital Partners also became involved with Miranda Technologies, creating activist shareholder drama as a result of which the company was then sold to Belden, providing JEC a good profit.
With Heiland’s new role, JEC and KIT have reached an agreement. Under the terms of the deal, Heiland and another activist investor have been given KIT Digital board seats in exchange for supporting the board. Further, they will refrain from taking further diverse actions against the company.
These changes have been put into place after several issues within KIT Digital during 2012, including low financial results which caused investors to sell their assets.
