Shares of Brightcom Group ended 4.9% higher at 30.15 rupees on the BSE today after the Group announced that it has signed a letter of intent (LoI) to acquire an Indian digital marketing services company.
While Brightcom did not name the target company considering the confidentiality clause in the LoI, it said that the target company is based out of India with 1,100 employees and has clients such as Netflix, Disney, Bitly, Hulu and The New York Times.
"A definitive agreement will follow after the completion of the customary business, legal and financial due diligence," Brightcom Group said in a release.
"They (target company) operate out of India, US and Europe. Their presence in the US and Europe helps them to be in touch with the latest developments in the advertising space in mature markets," it added.
Meanwhile, in a separate exchange notification, the Group said its board of directors will meet on Tuesday, July 13, to discuss the developments related to the deal and additional capital requirement for the acquisition.
The board will also consider preferential issue of equity shares to specific individuals and entities, subject to shareholders' approval through extraordinary general meeting, and regulatory approvals.