Video production platform Vimeo has announced that it will acquire Israeli video creation service startup Magisto. Terms of the deal were not disclosed, but reports in the Israeli media valued it at more than $150 million.
Following the acquisition, Vimeo and Magisto will work together to develop entirely new short-form video creation capabilities for the Vimeo platform, with the goal of helping individuals or businesses tell their stories with professionalism and ease, the government said.
“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, said Anjali Sud, CEO of Vimeo.
Oren Boiman, founder and CEO of Magisto, said that “Magisto guides entrepreneurs and small business owners through the video storytelling process, helping them use video effectively to grow their business and engage with audiences. We level the playing field so that any business can move fast and compete in today’s video-first world. We’re thrilled to join Vimeo’s industry-leading platform, and to power their vision to make professional quality video creation accessible to all.”
Magisto has over 75 employees with offices in California and Israel. The transaction is expected to close by the end of the second quarter, the companies said.