KIT digital has closed the previously announced sale of 2,980,000 shares of common stock at $10.50 per share for gross proceeds to the company of $31.3 million.

The net proceeds received by the company are expected to be approximately $28,500,000, after deducting the proceeds from underwriting discounts, commissions, legal fees, and deal-related expenses payable by the company.

As previously announced, KIT digital has granted the underwriters of the offering a 30-day option to purchase up to an additional 447,000 shares of common stock to cover over-allotments, the results of which will be reported upon closing of the over-allotment.

The company plans to use a significant portion of the net proceeds of the offering to finance acquisitions of, or investments in, competitive and complementary businesses, as a part of its growth strategy. In addition, the company intends to use a portion of the net proceeds for working capital and general corporate purposes, which may include the purchase of certain outstanding warrants issued in prior private placement financings.