Digital marketing solution companies Brightcom and MediaMint have decided to call off their ₹566-crore acquisition deal. “We have decided to change transaction from acquisition to a possible strategic alliance,” the two companies said in a joint statement.
They have announced cancellation of the share purchase agreement that was entered into on December 7, 2021. The cash-and-stock deal consummated last year comprised a cash transfer of ₹360 crore and ₹170 crore in Brightcom Group stock. However, the stock value of Brightcom fell sharply after the company disclosed to the exchange that the market regulator SEBI had ordered a forensic audit into its books after flagging a few issues.
Founded by Aditya Vuchi and his wife Neelima Marupuru 12 years ago, the company emerged as a key player in the niche player in the burgeoning adtech space. “For Brightcom, this has the beneficial effect of conserving capital to be used for other acquisitions as and when they get consummated,” a Brightcom executive said, commenting on the development.