Ybrant Set To Acquire US-based Digital Content Firm
Hyderabad-based digital marketing solutions company Ybrant Digital has told the Press that it is in the final stages of acquiring a US-based digital content company in an all-cash deal.
"We are close to acquiring a US-based company in an all-cash deal. It is one of the largest content properties in the USA. The transaction has not happened yet although we expect the deal to be closed no later than six months," said Ybrant Digital CEO and chairman Suresh Reddy.
According to Reddy, the acquisition would essentially increase Ybrant's reach and offerings. "Post-acquisition, we will be able to offer a larger bouquet of services to our advertisers," said Reddy. He, however, refused to share the name of the company, deal value or other details.
Established in 2000, Ybrant offers end-to-end digital marketing solutions to businesses, agencies and online publishers worldwide, using various digital communication tools, including display marketing, e-mail marketing, search marketing, affiliation marketing, co-registration marketing and media marketing. In the last five years, Ybrant has acquired and integrated seven businesses from across the world, the last being Israel-based Web 3.0, in which Ybrant acquired stake in June in an all-cash deal. Late last year, it acquired Internet and search portal Lycos, a US-based subsidiary of Daum Communications of Korea, for $36 million in a stock deal.
Other acquisitions by Ybrant include US-based MediosOne (2006), followed by US-based ad network AdDynamix for $10 million, Israeli company Oridian for $13 million and Serbia-based Seenetix for its flagship bulk e-mailing product VoloMP in 2007. In 2009, Ybrant Digital acquired two companies â€“ Max Interactive and Argentina-based ad network Dream Ad (to expand through Latin America).
Interestingly enough, of the eight acquisitions (including the current one not yet complete), none happens to an Indian company. When asked about this global acquisition strategy, Reddy said, "We are driven by markets. The main purpose of acquisition is to add companies with frontend capabilities to our portfolio, as well as to increase our geographical reach. In India, we may look at buying but currently, we are trying to make it on our own."
Last year, Ybrant Digital was looking to merge with BSE-listed IT outsourcing services provider LGS Global Ltd in a reverse merger deal valued at around $559 million (Rs 2,475 crore). Reddy informed Techcircle.in that the court date for the above mentioned merger had been set for 26 March 2012. "We are expecting the final order on that date," he added.