The deal has been made for a total consideration of Rs 33.5 million; after the acquisition, both companies will continue to function separately.
Digital media company Tyroo, along with Anurag Gupta, has announced the acquisition of DGM India. With the takeover, Tyroo, a SVG company (joint venture of Manish Vij's Vun Network and Harish Bahl's Smile Group), looks to become one of the significant players in the Indian digital media network.
Vij, founder, Tyroo, says, "DGM is a company with over five years of performance leadership - a world class proprietary technology and management organisation. We are excited to bring it as part of the Tyroo/SVG family. With this acquisition, there will clearly be a media network that can give advertisers scale and quality. For publishers, it will be the only place to have almost every running campaign in the Indian digital media."
He tells afaqs! that the acquisition was done after identifying a clear opportunity to become the second largest digital media company, after Google India, by next year and the need to provide advertisers alternatives to Google.
Besides DGM India, Vij says that Tyroo has also bought the global technology from DGM.
DGM India, an affiliate ad network, was formed in 2007 and was a subsidiary of Asia Digital Holdings Plc, a London Stock Exchange-listed company. Tyroo, too, was set up in 2007 and today claims to have a reach of over 20 million unique users in the country, representing more than 50 per cent of internet users in India.
Tyroo is represented by its businesses - Tyroo Direct and Tyroo Audience.
After the acquisition, both companies will continue to run separately. Gupta will be the managing director of DGM and Tyroo Direct will continue to be headed by Siddharth Puri.
According to Gupta, the core idea was to leverage the synergy factors of both companies. "DGM India has a superb team, technology and leadership in the performance business. It is on a very fast growth rate and will end the year with annual revenue of US$5-6 million. We are launching other DGM products in the market very soon and will enhance our technology," says Gupta.
According to a statement by the Board of Asia Digital Holdings available on its website, the company entered into a sale and purchase agreement to sell DGM India Internet Marketing Limited to Tyroo Media Private Limited and to Inflection Digital Holdings Private Limited (the company floated by Gupta to hold his shares) for a total consideration of Rs 33.5 million, of which Rs 23.625 million will be paid on or before May 16 or on the 10th day following completion of the conditions precedent to the agreement, whichever date is earlier.