Hyderabad-based digital marketing solutions provider Ybrant Digital Limited’s deal with Experian Interactive Media (EIM), which is currently one of the top five internet advertisers in the US, to buy the latter’s three Internet brands missed the deadline.
“The proposed deal to buy the Experian properties could not be completed within the committed time line. The company is working towards the same and will notify the exchange as soon as some concrete developments occur,” Ybrant said in a statement.
Announcing the deal in May this year, Ybrant had said that EIM’s three internet brands – comparison shopping engine PriceGrabber.com that powers Yahoo! and MSN Shopping, free online service LowerMyBills.com that allows consumers to compare rates on various ‘fixed cost’ items such as mortgage, auto insurance and health insurance, and online higher education portal ClassUSA.com – will add a business of $283 million (around Rs 1,500 crore), an employee strength of over 300, and the entire management team, to the company.
As per the agreement, of the total purchase price, $100 million will be paid in cash, which ICICI Bank and Credit Suisse had already agreed to sanction as loan. The remaining $75 million will be through a seller note as a short-term arrangement of two to three years,” Ybrant Digital’s chairman and managing director Suresh Reddy had earlier told mediapersons.
Once through, this will be the eighth acquisition for Ybrant in the last eight years and its second successful foray into acquiring premium destination sites. The company had acquired Lycos.com in 2010 for $36 million.
The acquisition will position Ybrant as a leader in many key digital marketing areas worldwide. In the $70-billion digital marketing industry worldwide, of which US alone accounts for over 50%, Nasdaq-listed internet marketing network ValueClick currently enjoys the leadership position with revenues of over $600 million, Reddy said.
The scrip of Ybrant Digital Limited is currently trading at Rs 79 on the BSE, up 1.74%, over the previous close of Rs 77.65.