Brightcom Group Ltd, an ad-tech company, has acquired Vuchi Media Pvt Ltd, which operates MediaMint, a digital consulting and operations services firm for Rs 566 crore (around $75 million), both the companies said in a statement.
The cash-and-stock deal includes Rs 360 crore (around $48 million) in cash and Rs 170 crore (around $23 million) in Brightcom Group stock. Another Rs 36 crore will be paid in six months from the closing of the deal, it said.
Vuchi Media Pvt Ltd, which owns the MediaMint brand, was founded in 2010. It supports display, video, and mobile advertising services for ad agencies, publishers, and platforms. It employs over 1,300 employees and has clients like Pinterest, New York Times, Netflix, Cox Automotive, Expedia among others, it said.
MediaMint said it expects to close the financial year 2022 with revenues of Rs 187 crore.
The companies stated post-acquisition MediaMint's leadership team will continue in the business. Co-founder Aditya Vuchi will stay on for six months to ensure a smooth transition.
"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,” Suresh Reddy, chairman of Brightcom Group said in a statement.
He added MediaMint has built operations that can scale easily due to their high-quality systems. the acquisition will immediately and meaningfully to Brightcom’s earnings.
Brightcom Group, which was formerly named Lycos Internet Limited, was incorporated in the year January 1999, it is an Ad-tech and software development company, engaged in providing technical solutions to digital advertisement, marketing and information management sectors through tech, new media, and the Internet of things-based businesses.
Tempus Legal served as the legal counsel and EY as financial advisor to Brightcom Group in this transaction while Sathguru Management Consultants acted as sole transaction consultant for MediaMint.
