Ybrant Digital Picks Minority Stake In Israel-based Web 3.0
Hyderabad-based Ybrant Digital Ltd, a digital marketing solutions company, has acquired a minority stake in Israel-based Web 3.0 for an undisclosed amount in all-cash deal.
Established in 1999, Ybrant provides support services and software tools for online marketing. It offers end-to-end digital marketing solutions to businesses, agencies and online publishers worldwide, using various digital communication tools including display marketing, e-mail marketing, search marketing, affiliation marketing, co-registration marketing and media marketing. The firm also provides custom software services and solutions ranging from developing and maintaining new applications to implementing third-party software. The company has also launched its local search platform Ybrant Reach (YReach) in India.
On the other hand, Web 3.0 operates in growing digital fields "the web, mobile web and performance-based marketing and applications development.
With this acquisition, Ybrant Digital intends to spearhead operations in the mobile space.
"We clearly see that the mobile media has huge potential for growth in the years to come. Ybrant has made a strategic commitment to play a significant role in the growth and development in this arena. This collaboration with Web 3.0 is the first among the few moves we are making towards strengthening our offering." said Suresh Reddy, chairman and CEO of Ybrant Digital.
Recently, Ybrant raised PE investment through a combination of debt and equity. Oak Investment Partners, Asia Pacific Capital, ICICI Bank and a US-based firm invested $48 million in the company. Ybrant intended to utilise the fund to grow its reach, develop new technology, expand internationally and explore acquisitions.
For the year ended March, 2010, Ybrant recorded a total income of Rs 62.5 crore, with net profit of Rs 33.7 crore, according to VCCedge, the financial research platform of VCCircle.
Ybrant Digital had closed a number of acquisition deals since its inception in 1999 when it was founded as USAGreetings.com. In 2007, it had acquired US-based ad network AdDynamix for $10 million, Israeli company Oridian for $13 million and Serbia-based Seenetix for its flagship bulk e-mailing product VoloMP. A year before, Ybrant had also picked up US-based MediosOne. In 2009, Ybrant Digital once again acquired two companies â€“ Max Interactive and Argentina-based ad network Dream Ad (to expand through Latin America). All these companies now operate as its subsidiaries.
Last year too, Ybrant closed quite a few significant deals. It had acquired Lycos, a leading search engine and Web portal, and a US-based subsidiary of Daum Communications of Korea, for which it had paid $36 million in a stock deal.