MUMBAI: Digital marketing solutions company Ybrant Digital and LGS Global, which is listed on the Bombay Stock Exchange, will be amalgamated.

Both firms are based out of Hyderabad and the proposed combined entity will be called Ybrant Digital Limited.

Ybrant chairman and CEO Suresh Reddy will be the chairman and CEO of the new Ybrant. LGS MD Subba Rao will be made the business head of the LGS Division in the new entity.
 
Ybrant Digital has raised $100 million in equity and debt from private equity funds such as Oak Investment Partners and GE Asia Pacific Capital. In the last five years, Ybrant has made seven acquisitions on a wholly owned basis, latest being Lycos Inc. from Waltham, Massachusetts.

Reddy said, "This is a decisive move that accelerates our strategy and positions us to win by offering even greater value to our customers and partners. In addition to the clear strategic benefits of combining two highly complementary organizations, we can create substantial shareholder value through significant cost structure improvements and access to much larger resource pool."

The merger is subject to regulatory approvals from stock exchanges and the High Court of Andhra Pradesh.