The Andhra Pradesh High Court has sanctioned the merger of Hyderabad-based Ybrant Digital, an online marketing company and LGS Global, a BSE listed technology and outsourcing services provider, the company said in a filing with the Bombay Stock Exchange (BSE). The combined entity will be referred to as ‘Ybrant Digital Limited’, as per the scheme. The High Court orders will be filed with the offices of the registrar of companies and the merger scheme will become effective with the appointed date being April 1, 2011.
In December 2011, Ybrant Digital and LGS Global received a nod from its shareholders for the merger. Earlier it was revealed that post merger, current Ybrant Digital CEO Suresh Reddy will be CEO and Chairman of the merged entity, and LGS Managing Director Subba Rao Karusula would be the Business Head of the LGS Division of Ybrant.
Founded in 2000 and headquartered in India, Ybrant Digital holds offices in 20 countries, including US, Argentina, Brazil, Chile, Uruguay, Mexico, UK, France, Germany, Sweden, Ukraine, Serbia, Israel, China, India, and Australia, and with representatives or partners in Spain, Greece and The Netherlands. Besides proprietary media such as Lycos, Gamesville, and getMedia in Latin America, Ybrant Digital partners with publishers such as Facebook, Google, MSN, Yahoo!, and Viacom, and claims to assists over 140 Ad Agencies including OMD, Carat, MediaCom, Group M, Quasar, Razorfish, Mindshare, Maxus, OmniCom and Oglivy, spread across Europe, the Americas and Asia. On the other hand, LGS provides Enterprise Resource Planning, Customer Relationship Management, Application Services, (including mobile applications), Testing Services, Enterprise Application Integration, E-commerce, Infrastructure Management Services, e-Learning, Identification Solutions and Strategic Transformational Services.
Last year, Ybrant Digital raised $48 million in fresh financing, in debt and equity from Oak India Investments, Asia Pacific Capital, and ICICI Bank. Ybrant had acquired Australian ad network company Max Interactive, Israeli ad firm Oridian($13.5 million), US-based DW Net Ventures LLC / MediosOne ($4 million), Serbia-based Seenetix for its flagship bulk emailing product VoloMP ($2.2 million) and US- based Pennyweb Inc ($10 million), Argentina based ad network DreamAd, and a minority stake in the Israel based Web 3.0. Earlier this year, Microsoft India appointed Ybrant media as its advertising sales house for following cities: Hyderabad, Chennai, Kolkata, Ahmedabad, Pune, and Goa.