Hyderabad-based firms Ybrant Digital Ltd, a privately held digital marketing solutions company, and BSE-listed IT outsourcing service provider LGS Global Ltd have agreed to merge in an all-stock transaction into a proposed entity called Ybrant Digital Ltd.
Under the deal announced yesterday, the equity swap will be six shares of LGS for every share of Ybrant, putting the deal value at around Rs2,475 crore ($550 million), according to a report.
Ybrant will hold 89-90 per cent of the new Ybrant Digital Ltd and LGS will hold the remaining 10-11 per cent.
Suresh Reddy, chairman and CEO of Ybrant, will be the chairman and CEO of the new Ybrant, while Subba Rao Karusula, managing director of LGS, will be the business head of the LGS division of Ybrant.
Ybrant, which has made seven acquisitions, the latest being Waltham, Massachusetts-based Lycos Inc, has raised over $100 million in equity and debt from some of the top PE funds. Its shareholders include premium institutional investors like Oak Investment Partners, GE Asia Pacific Capital among others.
Ybrant serves 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 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.
LGS is a global information technology implementation and outsourcing services provider with knowledge in key verticals and provides end-to-end enterprise solutions and specialising in ERP solutions, Microsoft and open source systems development.