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Home » Business » Brightcom calls of Rs 566-crore deal to acquire MediaMint; to go for strategic alliance

Brightcom calls of Rs 566-crore deal to acquire MediaMint; to go for strategic alliance

In December 2022, the Brightcom Group had entered into an agreement to acquire digital consulting firm MediaMint for Rs 566 crore in a cash and stock deal.

By Newsd
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Brightcom Group to acquire MediaMint for Rs 566 Cr

Hyderabad-based digital marketing solutions firm Brightcom has decided to call of its deal to acquire MediaMint for Rs 566 crore and will now go for a strategic alliance with the latter.

In December 2022, the Brightcom Group had entered into an agreement to acquire digital consulting firm MediaMint for Rs 566 crore in a cash and stock deal.

”Brightcom and MediaMint have jointly decided to change their proposed transaction from acquisition to a possible strategic alliance and provide back-end services to Brightcom’s future acquisitions. In this context, they have cancelled the definitive share purchase agreement that was entered into on December 07, 2021,” a regulatory filing stated.

Some of MediaMint’s recent client additions are in the same business as Brightcom, which could impact the growth prospects of the combined business. As a result, the companies determined it was best to pursue independent paths of growth, it explained in the filing.

”Under the reworked plan, Brightcom will not acquire MediaMint”, it stated.

Both Brightcom and MediaMint have experienced rapid rise in revenue and profitability in FY22. The companies determined this plan would help them pursue independent growth paths with possible collaborations, it explained.

For Brightcom, this has the beneficial effect of conserving capital to be used for other acquisitions as and when they get consummated. For MediaMint, this enables them to seek growth plans that may not have been possible due to this acquisition, it further stated.

Brightcom Group managing director M Suresh Kumar Reddy said, ”An effective growth strategy uses both mergers and acquisitions, and partnerships to drive expansion. We are figuring out what is better for which situation and critical for a good RoI.” Brightcom, which posted a consolidated post-tax profit of Rs 912 crore on a revenue of Rs 5,019 crore for the fiscal ended March 2022, had a series of 10 global acquisitions over the last few years, which currently account for over USD 300 million of its revenues.

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