Ybrant to pick minority stake in Israeli online recruitment services firm Jobookit
Public listed digital marketing solutions company Ybrant Digital Limited is picking a minority stake in Tel Aviv Stock Exchange-listed online recruitment solutions firm Jobookit, as per a public disclosure. Ybrant had previously said it may invest in Jobookit.
While the firm has not disclosed the proposed investment amount, Jobookit has a market cap of little over $9 million which means Ybrant will invest less than $5 million as part of the deal if it is to be acquired from an existing shareholder. If this is through a fresh allotment, the amount could be higher.
Ybrant will exclusively represent Jobookit and affiliates' websites for the next 30 months for their online advertising needs. It has the right to extend the representation agreement for two more years based on performance.
Joining Ybrant will give Jobookit the access to its global reach and full digital marketing capabilities.
"This is great news for the company, as it will give Jobookit genuine global reach, and hugely expanded capability through Ybrant's network of digital marketing advertisers in most territories on earth, while maintaining Jobookit's unique service proposition. We see great opportunities for promoting and developing our own products, for expanding the range of work we do." said Rafi Shkolnik, CEO of Jobookit.
"Ybrant has unparalleled expertise in realising the benefits of digital technology platforms in a multi-brand, multi-channel and multi-territory environment, helping to transform its enterprise clients by offering a wide range options to reach their consumers. As a leading destination for users of varied interests globally, Jobookit is an important strategic addition to Ybrant," said Jacob Nizri, president of Ybrant Digital.
Jobookit develops technologies to match job seekers and employers across the world. It also owns numerous destination websites offering content of varied kinds. Largest site among them is EbaumsworId.com, besides Celebremix.com and Yourdailymedia.com.
Founded in 2008 by Arik Filstein (CEO), the firm reverse listed with Danidiv Investments in 2012 and currently trades under Jobookit Holdings Ltd.
Ybrant itself went public through a reverse merger with BSE-listed IT outsourcing services provider LGS Global Ltd and was listed in July 2012.
Started in 2000, Ybrant offers digital marketing solutions to businesses, agencies and online publishers globally. In the past, the firm had raised funding from Oak Investment Partners, Sansar Capital and GE Asia Pacific Capital.
For Ybrant this would mark a fresh attempt to build overseas assets. In May 2012, Ybrant had entered into a deal to acquire PriceGrabber, LowerMyBills and ClassesUSA.com from London Stock Exchange-listed information services firm Experian. But this deal came unstuck as it was not able to come up with the cash to seal the deal.
Ybrant acquired several global businesses over the past five years, including Lycos (in an all-stock deal in August 2010), Australian ad network Max Interactive and Argentina-based ad network Dream Ad (in 2009), Israeli company Oridian (for $13 million), Serbia-based Seenetix (in 2007), US-based MediosOne (in 2006) and also ad network AdDynamix (for $10 million). The company also picked up minority stake in Israel-based Web 3.0 in an all-cash deal in June 2011.
The Hyderabad-based company reported consolidated sales of Rs 462.38 crore and net profit of Rs 66.29 crore for the quarter ended December 31, 2013.
(Edited by Joby Puthuparampil Johnson)