This move solidifies Digitalsmiths' industry authority as the leading provider of personalized next-generation metadata and search offerings. "Deep metadata is the engine that powers the consumption of digital media. The combination of Digitalsmiths and Gotuit provides an end-to-end solution for powering multi-platform content personalization. Bringing together search, discovery, recommendations and targeted advertising will help content owners generate revenue and consumers discover more relevant content," said Colin Dixon of The Diffusion Group.

"Digitalsmiths has created the first and only singularly focused next generation video metadata company," said Ben Weinberger, CEO of Digitalsmiths. "By combining our ability to scale libraries of content and Gotuit's broadcast capabilities, we've created the most comprehensive solution for video indexing and metadata monetization available to serve the media industry across multiple platforms and content types – movies, sports, news and television for both library media and live broadcasts."

The acquisition brings together the best of breed technology for automation and human authoring of metadata. Additionally, Digitalsmiths now controls the deepest intellectual property portfolio in the video metadata space. The company's portfolio now consists of more than 35 patents covering core metadata creation, aggregation and application among others.

Mark Pascarella, CEO of Gotuit, said, "We're excited to announce the next phase of Gotuit's evolution. I firmly believe this creates the preeminent leader in video metadata."

Pascarella will remain involved in the combined company during the transition, and will sit on the Digitalsmiths' advisory board. Existing shareholders in Gotuit are now shareholders in Digitalsmiths. Shareholders include Atlas Venture, Highland Capital Partners and the Kraft Group. Digitalsmiths existing investors include .406 Ventures, Chrysalis Ventures, The Aurora Fund and Cisco Systems.