Vimeo Buys Israeli Instant Video Startup Magisto

 Video streaming company Vimeo announced Monday that it had signed an agreement to buy Israeli video creation startup Magisto Ltd. Vimeo did not disclose the financial terms of the deal. The acquisition is expected to close by mid-2019.

For daily updates, subscribe to our newsletter by clicking here.

Magisto’s instant short video creation app has over 100 million users, according to the statement. Following the acquisition, Vimeo and Magisto will work to develop new video creation tools for Vimeo’s streaming platform, Vimeo said. Magisto users will gain access to Vimeo's platform and tools. Vimeo’s video streaming website has more than 90 million members in over 150 countries.

Magisto was founded in 2009 by Oren Boiman and Alex Rav-Acha and has over 75 employees in California and Israel. The company uses artificial intelligence technologies such as computer vision to automatically analyze photos and video footage and edit them into professional videos in seconds. Magisto has raised $23 million in equity to date, according to Pitchbook data.