Brightcom Group to acquire US-based digital audio company for $102m
Brightcom Group, an Indian digital marketing services provider, has revealed plans to acquire an undisclosed US-based digital audio company, for $102.5 million.
In this regard, the Hyderabad-based firm has signed a letter of intent (LOI) to purchase all the assets of the US firm, which has programmed radio stations and various digital brands, apart from offering digital marketing services in the US.
The consideration is made up of 95 million in cash and the remaining amount in the form of $7.5 million of Brightcom Group shares.
Brightcom Group said that the acquisition will enable it to make a significant foray into the digital audio advertising segment.
Peshwa Acharya — Brightcom Group President (Group Strategy) said: “This acquisition is in sync with our strategy to expand our 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.
“As more users join the digital audio trend, the advertisers are keen on reaching these users”.
The acquired assets will come under Brightcom Group’s US operating entity under the new unit of Brightcom Audio, which will be headed by Satish Cheeti.
Satish Cheeti — President of Brightcom Audio said: “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.”
The deal is contingent on customary financial, legal and business diligence, and regulatory approvals.