Kaltura Signs Definitive Agreement to Acquire eSelf.ai, a provider of AI-based Interactive Avatars

Core Insights - Kaltura has signed a definitive agreement to acquire eSelf.ai, enhancing its capabilities in immersive, AI-infused virtual agents and experiences for organizations [1][3][9] - The acquisition is expected to accelerate Kaltura's evolution from enterprise video experiences to more interactive and engaging solutions [1][9] Company Overview - Kaltura, Inc. is known for its AI Video Experience Cloud, which provides hyper-personalized video experiences aimed at boosting customer and employee engagement [12] - eSelf.ai, founded in 2023, specializes in multimodal AI technology for agentic interactions with live avatars and has been recognized as a significant player in tech by FastCompany [2][12] Technology Integration - Kaltura plans to integrate eSelf.ai's technology into its existing video products, allowing for the creation of conversational, visually expressive agents that can interact with users in real-time [3][4] - The new technology will enable Kaltura's Genies to analyze user screens and provide dynamic interactions, enhancing customer engagement and employee retention [3][4] Product Development - Kaltura aims to develop a new video-on-demand content creation tool that incorporates eSelf.ai's avatar technology, allowing users to add animated avatars to videos easily [4] - The acquisition will also support the creation of embeddable, self-served interactive avatars, contributing to Kaltura's product-led growth strategy [4][5] Market Opportunities - The acquisition is expected to create upsell opportunities within Kaltura's premium customer base and attract new enterprise clients, including small and medium-sized enterprises [5][10] - The immersive virtual agents will be applicable across various use cases, including marketing, sales, support, training, recruiting, and internal communications [8][13] Financial Details - The transaction includes a cash payment of $7.5 million upon closing, with an additional $12.5 million payable over three years based on performance milestones, and 4,690,025 shares of Kaltura stock [10] - The total deal value is approximately $27 million, contingent on achieving all earnout milestones and retention targets [10] Future Outlook - The acquisition is expected to close in Q4 2025, pending customary closing conditions and regulatory approvals [11]