Mumbai, Feb 7: Digital marketing services provider Brightcom Group on Monday said it has signed an agreement to acquire all the assets of a US-based digital audio company for USD 102 million. In a regulatory filing, Brightcom Group said it has signed a Letter of Intent (LOI) to acquire all the assets of a US-based digital audio firm that owns and operates multiple assets.
“The assets’ acquisition value, including its net cash, is pegged at USD 102.5 million consisting of USD 95 million in cash and USD 7.5 million of BCG stock,” the company. According to the statement, the US based company is an integrated digital platform offering several programmed radio stations, various digital brands and digital marketing services in many markets in the US.
“This move will mark the significant entry of the Brightcom Group into this fast-growing digital audio advertising segment. This acquisition is immediately EPS accretive by adding USD 45 million to the topline revenue of Brightcom, and USD 15 million to its EBIDTA,” the company said adding that the synergies between the current Brightcom business and new assets will add to the above numbers. The acquired assets will become a part of the group’s US operating entity under the new division of Brightcom Audio, headed by Satish Cheeti.
“We are excited to bring these super successful audio assets into our fold, which will open up new opportunities and growth in line with the overall vision of the company”, Brightcom Audio President Satish Cheeti said. He further said that the acquisition is in sync with the company’s strategy to expand its services beyond display, mobile and video 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 and wide range of advertising solutions, including audio”, said Peshwa Acharya, President (Group Strategy), Brightcom Group. The company noted that the deal is subject to customary financial, legal and business diligence, as well as regulatory approvals, thereafter. The advisors to the deal are Houlihan Lokey on the transaction side and Lerman Senter on the legal side.
