Brightcom inks pact to acquire US-based digital audio company for $102.5 mn

Hyderabad: Hyderabad-based Brightcom Group signed a Letter of Intent (LOI) to acquire all the assets of a US-based digital audio firm that owns and operates multiple assets. The assets’ acquisition value, including its net cash, is pegged at $102.5 million (over Rs 760 crore) consisting of $95 million (about Rs 710 crore) in cash and […]

Hyderabad: Hyderabad-based Brightcom Group signed a Letter of Intent (LOI) to acquire all the assets of a US-based digital audio firm that owns and operates multiple assets. The assets’ acquisition value, including its net cash, is pegged at $102.5 million (over Rs 760 crore) consisting of $95 million (about Rs 710 crore) in cash and $7.5 million (over Rs 50 crore) of BCG stock.

The company is an integrated digital platform offering several programmed radio stations, various digital brands, and digital marketing services in many markets in the US.

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Brightcom said, “This acquisition is immediately EPS accretive by adding $45 million to the topline revenue of Brightcom, and $15 million to its EBIDTA. The synergies between the current Brightcom business and new assets will add to the above numbers.” The advisors to the deal are Houlihan Lokey on the transaction side and Lerman Senter on the legal side.
This move will help Brightcom foray into this fast-growing digital audio advertising segment. Digital audio advertising includes all ad revenue generated through pre and in-Stream Audio Ads that appear in music (music also contains various radio services) and podcast streaming services. This revenue would include ad-supported free versions of premium subscription services or services funded by advertising.

With already 200 million active consumers of digital audio in the US, audio is considered the second most popular digital activity. The worldwide user count is rapidly growing and is expected to go past 1.5 billion by 2026.

The acquired assets will become a part of the group’s US operating entity under the new division of Brightcom Audio, headed by Satish Cheeti.

“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”, said Peshwa Acharya, president (Group Strategy), Brightcom Group.

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