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Ybrant Digital Ltd, a privately held digital marketing solutions company, and LGS Global Ltd, which is listed on the Bombay Stock Exchange, will be merged. Both firms are based out of Hyderabad. The combined entity would be called Ybrant Digital Ltd.
Ybrant Digital, which raised $100 million in equity and debt, from private equity firms such as Oak Investment Partners and GE Asia-Pacific, recently acquired the US-based Lycos.
LGS Global is an IT outsourcing projects firm with a turnover of Rs 315 crore in 2010-11. The board, which met on Monday, approved the merger plan and swap ratio. The exchange ratio is put at six equity shares (Rs 10 each) of LGS for every one equity share of Ybrant of Rs 10.
The merger is subject to regulatory approvals from stock exchanges and the High Court of Andhra Pradesh, India.
Mr Suresh Reddy, Chairman and Chief Executive Officer of Ybrant, would be the Chairman and CEO of the combined entity.
Mr Subba Rao Karusula, Managing Director of LGS, would be the Business Head of the LGS Division of Ybrant. Shares of LGS Global moved up marginally to Rs 51 on Monday, up by about one per cent over previous close.
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