Hyderabad-based Brightcom In Acquisitions Sphere
2 years ago Rituka MHyderabad-based Brightcom Group Limited, the leading name in the Ad-Tech industry has signed a Letter of Intent (LOI) to acquire all the assets of a US-based digital audio firm. This deal consists of $95 million in cash and $7.5 million in stock, valuing the deal at around $102.5 million.
Hyderabad-based Brightcom Group is on an acquisition spree, previously with the acquisition of MediaMint last month for 566 Crores. This month, this Hyderabad-based startup has acquired a US-based digital audio firm. Citing confidentiality reasons, Brightcom Group could not disclose the firm’s name. The company is an integrated digital platform offering several programmed radio stations. Further, they deal with various digital brands, and digital marketing services across various markets in the US.
Details of the Acquisition
Speaking on the investment, Brightcom said; “This acquisition is immediately Earnings Per Share (EPS) accretive by adding $45 million to the topline revenue and $15 million to its EBIDTA. These assets will become a part of Brightcom’s Audio division, headed by Satish Cheeti. Adding, the company said, “The synergies between the current Brightcom business and new assets will add to the above numbers.â€ÂÂ
This deal was led by Houlihan Lokey as the transaction advisor and Lerman Senter on the legal side. The digital audio advertising segment includes ad revenue, generated through pre and in-Stream Audio ads and podcast streaming services. This revenue would include ad-supported free versions of premium subscription services or services funded by advertising. This segment is booming, and in the US, audio is one of the most popular digital activities. The user count in this segment is growing exponentially and is expected to exceed 1.5 B by 2026.
This acquisition will help Brightcom foray into this segment and establish dominance across the world. Adding, Peshwa Acharya, president (Group Strategy), Brightcom Group said; “This acquisition is in sync with our strategy to expand our services beyond display, mobile, and video services. We aim to offer full-service end-to-end digital marketing assistance to our clients. With this acquisition, Brightcom Group will be one of the very few companies globally to provide a holistic range of advertising solutions, including audioâ€ÂÂ.
