Vimeo said on Monday that it has entered an agreement to acquire Magisto, an Israeli-founded video creation service with over 100 million users.
The terms of the deal were not disclosed but Israeli business daily Globes reported that Vimeo paid approximately $200 million, according to sources.
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Founded in 2011 by Dr. Oren Boiman and Dr. Alex Rav-Acha, Magisto developed AI-driven, cloud-based technology services for creating and sharing short-form videos, complete with music and animation options. The company has offices in California and Israel.
Vimeo said in a statement that “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.”
In addition, the two companies 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, Vimeo 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,” explains Anjali Sud, CEO of Vimeo. “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.”
Dr. Boiman said, “We’re thrilled to join Vimeo’s industry-leading platform, and to power their vision to make professional quality video creation accessible to all.”