Brightcom Group was locked in an upper circuit of 5% at Rs 145.50 after the company entered into a definitive agreement to acquire 100% of Vuchi Media, operated under the brand name of MediaMint.
Founded in 2010, MediaMint is an end-to-end digital consulting and digital operations provider specialising in Ad Operations, Campaign Management, Creative Services, Data Analytics, Platform Support, Dev Ops, and more. MediaMint employs over 1300 employees, servicing reputed international clients such as Pinterest, New York Times, Netflix, Cox Automotive and ExpediaMediaMint's annualized adjusted EBITDA is expected to be approximately Rs 67 crore. MediaMint's Revenue for the FY22 March ending is expected to be Rs 187 crore. The company has been growing revenue and margins at a CAGR of over 40% over the past 3 years.
The consideration paid for acquisition is Rs 566 crore, out which Rs 360 crore is paid in cash and Rs 170 crore in Brightcom Group stock. Remaining Rs 36 crore will be paid in six months from closing.
Brightcom's management said it is proactively expanding its backend capabilities to increase its capacity to capture new opportunities and execute on the strategic needs of its clients globally. The addition of MediaMint's digital marketing operations experience will strengthen the Brightcom group's backend in supporting the anticipated sharp growth of the business across various sub-sectors of Digital advertising and media.
Brightcom Group consolidates ad-tech, new media and the Internet of Things (IoT) based businesses across the globe, primarily in the digital eco-system. On a consolidated basis, the company reported a 106% jump in net profit to Rs 212.15 crore on a 72.9% rise in net sales to Rs 1,103.78 crore in Q2 FY22 over Q2 FY21.
Shares of Brightcom Group hit a record high of Rs 145.50 in intraday today. The stock has zoomed 3708% higher from its 52-week low of Rs 3.82 posted on 15 December 2020. In last one month, the counter has jumped 83.8% as compared to a 3.7% fall in Nifty 50 index.
On the technical front, the stock's RSI (relative strength index) stood at 75.615. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock is trading above its 50 and 100 days simple moving average placed at 90.69 and 63.39 respectively. These levels will act as crucial support zones in near term.
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