Brightcom Group, a Hyderabad based digital marketing company is pretty volatile today. From its close of Rs.172.20, it opened itself at its 5% UC of the day at Rs.180.80 but soon slipped down to Rs.170 and is now trading around the same levels.
The market initially reacted positively to the news that it has signed a Letter of Intent to acquire all the assets of a US-based digital audio firm that owns and operates multiple assets.
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.
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 assets' acquisition value, including its net cash, is pegged at $102.5 million consisting of $95 million in cash and $7.5 million of BCG stock.