UK-based Aegis Group plc (Aegis), a leading, focused media and digital communications group, today announced that it had entered into an agreement to acquire Communicate 2 (C2), a marketing and search agency in India.
According to sources, the transaction is estimated to be around $10 million (Rs 55 crore).
Aegis was planning to acquire C2 in 2008 itself, but the deal did not go through that time.
Now, as per the deal, Aegis will buy out shares from all the non-promoters upfront. The HNIs or the non-promoters of the company currently holds around 30 per cent, while the promoter holds majority share in the company. Also, Aegis will buy out promoter's stake — mainly Vivek Bhargawa's — under an earn-out mechanism.
It may be noted C2’s gross assets as at March 31, 2012 were Rs 12.9 crore (£1.5) million. The company raised $1.2 million from high network individuals in June 2009 and Lastaki Advisors was the advisor to that fund raising.
C2 is a specialist performance marketing agency which focuses on search engine optimisation, search engine marketing, contextual advertising, search strategies around social media and lead generation.
Established by Vivek Bhargavain 1997, C2's clients includes Tata Consultancy Services, Cleartrip, ICICI Lombard and HDFC Bank, and international businesses, including Travelocity, Aviva Insurance and American Express. C2 has offices in Mumbai, Delhi and Pune and employs over 130 employees.
C2 will be merged into iProspect India’s existing operations, strengthening its network in key cities across India and providing additional service capabilities for its clients. The acquisition, which was completed today, is in line with the Aegis Group strategy of increasing its digital profile and capability in faster growing regions.