Brightcom Group acquires MediaMint for Rs 566cr

PTI | New Delhi | Updated: 07-12-2021 20:20 IST | Created: 07-12-2021 20:20 IST
Brightcom Group acquires MediaMint for Rs 566cr
  • Country:
  • India

Brightcom Group on Tuesday said it will acquire Vuchi Media Private Limited, which operates end-to-end digital consulting services firm 'MediaMint', for about Rs 566 crore.

''Brightcom Group acquired 100 per cent of MediaMint for about Rs 566 crores in cash and stock,'' a regulatory filing said.

Of this, Rs 360 crore in cash to be paid at closing, Rs 170 Crore in Brightcom Group (BCG) stock, and Rs 36 crore to be paid in six months from closing, it added.

The closing of the transaction is expected to take place within two months from the date of signing the Share Purchase Agreement, subject to completion of conditions precedent, the filing said.

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, the filing said adding that Aditya Vuchi (co-founder) will stay on for six months to ensure a smooth transition.

Brightcom's management is proactively expanding its backend capabilities to increase its capacity to capture new opportunities and execute on the strategic needs of its clients globally. The addition of MediaMint's digital marketing operations experience will strengthen the Brightcom group's backend in supporting the anticipated sharp growth of the business across various sub-sectors of Digital advertising and media, the filing said.

''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,'' Brightcom Group Chairman Suresh Reddy said.

Further, the acquisition enhances Brightcom's M&A strategy by having a more robust backend support model to improve future targets' operating efficiencies and expedite other synergy realisation efforts.

''The MediaMint acquisition will be immediately and meaningfully accretive to our earnings,'' he noted.

Founded in 2010, MediaMint supports display, video, and mobile advertising services for ad agencies, publishers, and platforms. The company works closely with creative agencies, publishers, media buying firms, and analytics platforms to deliver results for top brands.

It employs over 1,300 employees, servicing international clients such as Pinterest, New York Times, Netflix, Cox Automotive, Expedia, and others.

MediaMint's annualised adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is expected to be approximately Rs 67 crore, and its revenue for the financial year 2021-22 is expected to be Rs 187 crore, the filing said.

The company, which has offices in India, Poland and the US, has been growing revenue and margins at a CAGR of over 40 per cent over the past three years, it added.

''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,'' MediaMint co-founder Neelima Marupuru said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Give Feedback