Digital marketing firm Ybrant Digital has said that it has merged with an IT implementation and outsourcing services provider LGS Global Ltd in an all-stock transaction to create a global digital marketing powerhouse. Though the merger is subject to regulatory approvals from Indian stock exchanges and the High Court of Andhra Pradesh, the proposed combined entity will be named as Ybrant Digital Limited, in which, Ybrant Digital will have 89 per cent and LGS will have 11 per cent share holding.

Ybrant Chairman and CEO Suresh Reddy will be the Chairman and CEO of the combined entity, Subba Rao Karusula, Managing Director of LGS, will be the Business Head of the LGS Division of Ybrant. The new entity will offer digital marketing services for businesses, publishers and agencies, with a commitment to serving customers with best of the breed platforms, the release said.

In the last five years, Ybrant has made seven acquisitions on wholly-owned basis, latest being Lycos, Inc from Waltham, Massachusetts. Ybrant Digital has raised over USD 100 million in equity and debt from some of the top PE funds. Ybrant's shareholders include premium institutional investors like Oak Investment Partners, GE Asia Pacific Capital, among others.

"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 organisations, we can create substantial shareholder value through significant cost structure improvements and access to much larger resource pool," Suresh Reddy has said.