Stock Report

Brightcom Group Limited to acquire MediaMint



Posted On : 2021-12-07 19:36:20( TIMEZONE : IST )

Brightcom Group Limited (NSE: BCG | BSE: 532368), the leader in the Ad-Tech industry, has announced the signing of a definitive share purchase agreement to acquire 100% of Vuchi Media Private Limited, operating under the brand name of MediaMint.

MediaMint is an end-to-end digital consulting and digital operations provider specializing in Ad Operations, Campaign Management, Creative Services, Data Analytics, Platform Support, Dev Ops, and more.

Transaction Details

Brightcom Group acquired 100% of MediaMint for about Rs.566 crores in cash and stock.

- Rs. 360 crores in cash to be paid at closing.
- Rs. 170 crores in BCG stock.
- Rs. 36 crores to be paid in six months from closing.

MediaMint employs over 1300 employees, servicing reputed international clients such as Pinterest, New York Times, Netflix, Cox Automotive and Expedia, to name a few.

MediaMint's Annualized Adjusted EBITDA is expected to be approximately Rs. 67 Crore. MediaMint's Revenue for the FY22 March ending is expected to be Rs. 187 Crore. They have been growing revenue and margins at a CAGR of over 40% over the past 3 years.

After the acquisition, MediaMint will continue its strong trajectory serving its growing list of enterprise and market-leading clients. MediaMint's leadership team, including Neelima Marupuru, Anush Kumar, Jason Riback and Aashay Paradkar, will continue to help guide the rapid growth of the business. Aditya Vuchi, Co-founder, will stay on for six months to ensure a smooth transition.

Tempus Legal is serving as the legal counsel and EY as exclusive financial advisor to Brightcom Group in this transaction.

Sathguru Management Consultants acted as sole transaction consultant for MediaMint.

"MediaMint will enable us to build more robust solutions and bring them to our customers faster. Additionally, we see the potential for strong organic growth in MediaMint's backend services business as well. They have built an excellent operation that can scale easily due to their high-quality systems. Further, the acquisition enhances our M&A strategy by having a more robust backend support model to improve future targets' operating efficiencies and expedite other synergy realization efforts. The MediaMint acquisition will be immediately and meaningfully accretive to our earnings," said Suresh Reddy, Chairman of the Brightcom Group.

"We are excited to join the Brightcom Group," said Neelima Marupuru, Co-founder of MediaMint. "Brightcom's history of developing and growing technology and operations business fits well with our ambition to expand the capabilities and access to talent in new regions."

"Our clients will continue to rely on the same great service and support from MediaMint, and we will now have the capacity to accelerate, even more, to enhance the flexibility, scalability and efficiency we endeavour to deliver to business leaders around the world," said Jason Riback, President at MediaMint. "We look forward to working alongside the BCG team to drive long term growth at the combined Company."

"MediaMint's founders Aditya and Neelima, along with the Company's executive management team, have built a top-tier organization. We believe adding them to the BCG family will benefit all parties. I want to take this opportunity to welcome them to our organization," said Peshwa Acharya, President of Brightcom Group.

Shares of Brightcom Group Limited was last trading in BSE at Rs. 138.60 as compared to the previous close of Rs. 132.00. The total number of shares traded during the day was 61117 in over 261 trades.

The stock hit an intraday high of Rs. 138.60 and intraday low of 138.60. The net turnover during the day was Rs. 8470816.00.

Source : Equity Bulls

Keywords

BrightcomGroupLimited INE425B01027 BCG Acquisition MediaMint AdTech