Hitherto we’ve had the big Western marcoms companies snapping up every Indian digital business they can but now two big Indian digital marketing firms, Ybrant Digital and LGS Global (both of whom have been acquisitive in their own right) are planning to merge to create a national champion in the sector.
Ybrant, which recently raised $100m for exansion from a number of private equity funds, will be in the driving seat with 89 per cent of the new company (still awaiting legal clearance in India) which will trade as Ybrant Digital. The all-stock deal values the new company at $550m.
Ybrant, which is an all-round digital marketing specialist, was founded in Hyderabad by Suresh Reddy (pictured) and Vijay Kancharia in 1999. It traded as Ybrant Technologies before renaming itself as Ybrant Digital in 2008. In recent years it has bought seven digital companied the world, the most recent being being Lycos Inc. in Waltham, Massachusetts.
LGS Global is a specialist in cloud computing and mobile applications and, like Ybrant, employs over 1,000 people in a number of countries.
The combined company’s clients will include BlackBerry, Ford, Porsche, 3M, O2, Reckitt Benckiser and HSBC, numerous big ad agencies and also media owners like Facebook and Yahoo.