HYDERABAD, India–(BUSINESS WIRE)–Ybrant Digital Limited (Privately held) and LGS GLOBAL LIMITED (BSE: 532368) announced today that the two companies propose to merge in order to create a Global Digital Marketing powerhouse. The merger is subject to regulatory approvals from Indian stock exchanges and the high court of Andhra Pradesh, India. The proposed combined entity will be named as Ybrant Digital Limited.
“This is a decisive move that accelerates our strategy and positions us to win by offering even greater value to our customers and partners”
Ybrant has a successful track record of acquiring and integrating businesses from across the world. In the last five years Ybrant has made seven acquisitions on a wholly owned basis, latest being Lycos Inc. from Waltham, Massachusetts.
Ybrant Digital has raised over $100 million in equity and debt from some of the top PE funds. Ybrant’s shareholders include premium institutional investors like Oak Investment Partners, GE Asia Pacific Capital among others.
The new Ybrant will offer the industry’s most comprehensive Digital Marketing services for businesses, publishers and agencies, with a commitment to serving customers with best of the breed platforms.
Ybrant Digital services leading global brands including SAP, Porsche, Ford, UPS, Swissair, Chevrolet, 3M, Jeep, US Army, LaSalle and Lufthansa. Besides owning proprietary media such as Lycos, Gamesville, getMedia in Latin America and several travel websites in Australia, Ybrant Digital partners with top global publishers such as Facebook, Google, MSN, Yahoo!, and Viacom, and assists over 140 top Ad Agencies including OMD, Carat, MediaCom, Group M, Quasar, Razorfish, Mindshare, Maxus, OmniCom and Oglivy, spread across Europe, the Americas and Asia.
Suresh Reddy, Chairman and CEO of Ybrant, will be the Chairman and CEO of the new Ybrant. Subba Rao Karusula, Managing Director of LGS, will be the Business Head of the LGS Division of Ybrant.
“This is a decisive move that accelerates our strategy and positions us to win by offering even greater value to our customers and partners,” said Suresh Reddy. “In addition to the clear strategic benefits of combining two highly complementary organizations, we can create substantial shareholder value through significant cost structure improvements and access to much larger resource pool.”
Rao said, “We are creating a new kind of industry leader — one founded on customer success, world-class engineering, and best of breed products and services. In sharp contrast to our competitors, we are committed to leading the industry to open, market-unifying architectures and interoperability, which reduce complexity and cost for our customers. With this move, we intend to change the basis of competition in the industry.”
The transaction is expected to be substantially accretive to Ybrant’s pro forma earnings per share in the first full year of combined operations based on achieving planned cost synergies. These anticipated synergies result from efficiencies in administration, procurement, development and marketing.
It would have operations in more than 20 countries with over 1200 employees.