Ybrant Digital subsidiary Online Media Solutions Limited has signed a Letter of Intent to evaluate an investment opportunity with Israeli online recruitment company Jobookit, the company informed BSE. It is looking to acquire a stake in Jobookit by reportedly investing Rs 6.17 crore (NIS 3.5 million) at a valuation of Rs 140.4 crore (NIS 80 million), according to Israeli website TheMarker. The final definitive agreement will be completed tentatively by May 1.
The company also informed BSE that it is also looking to sign a media representation agreement with Jobookit. The companies have signed a non-binding Letter of Intent that outlines the general terms and
Jobookit had recently announced that it was in talks to acquire an American content and video sharing website for $2.5 million. Ybrant’s CEO and Chairman Suresh Reddy had told Deccan Chronicle earlier this year that it is looking to tap video ads. It also said in its earnings report Q3-FY14 that it had improved its video marketing business by working through a “trusted” video platform for advertising, which gave the company access to video ad inventory reaching 200 million monthly unique visitors across 80 countries.
It’s not clear if the website Jobookit acquired was the same one Ybrant was working with, but it could explains its sudden interest in the Israeli company. It is also possible that the company Jobookit acquired recently, was competing against the firm Ybrant has a tie-up with. So by investing in Jobookit, the digital marketing agency has possibly gained access to two major video sharing websites.
Jobookit’s other products include ExactMe, a CV uploading service; PopCV, a tool for recruiters that helps them scan through all the CVs in the inbox to pick the right profile for a job; and web-based recruitment application SkilliQ.
Ybrant had reported digital marketing revenues of Rs 355.41 crore for the quarter ended December 31, 2013, registering a 42.9% increase from Rs 248.69 crore in the same quarter last year and a 26.1% increase from Rs 281.87 crore in the previous quarter. It also registered a net profit of Rs 66.29 crore for the quarter, a 9.9% increase from Rs 60.34 crore profit in the same quarter last year and a 14.8% increase from Rs 57.76 crore profit in the previous quarter.