New Delhi: Digital media network company SVG Media Pvt. Ltd said on Thursday that it is taking over online advertising company Komli Media’s India business and global brand rights, without revealing the price it’s paying for the acquisition.

Following the purchase, Komli will continue to operate as an independent unit along with SVG Media’s other units—Tyroo Technologies, DGM and SeventyNine.

“We are determined to deliver to our advertisers a comprehensive suite of digital marketing products. With Komli’s addition, our advertisers will also get highest reach in social media. We are working hard to be the first billion-dollar digital marketing platform from India," said Manish Vij, founder and chief executive officer of SVG Media.

The transaction is expected to be an all-cash deal, giving an exit to Komli’s existing investors.

Komli was founded in 2006 by Amar Goel and Akshay Garg, and counts Norwest Venture Partners, Nexus Venture Partners, Helion Venture Partners, Draper Fisher Jurvetson and Peepul Capital as its investors.

Komli’s India business offers cross-device solutions across social media, and video for marketers, agencies and publishers.

Komli’s almost 100 employees will continue to work with the company, said Vij. Goel and Garg will act as advisers to the company after the purchase.

The deal ties in with both Komli Media’s strategy to focus on the US market for expanding its revenue and SVG’s long-term plan of becoming a leading ad tech firm in the Asia Pacific.

In an August interview, Vij said that although SVG’s focus was mainly India, it was also looking at the markets in Dubai, Indonesia, Singapore and South Korea and was looking to grow both organically, and by acquiring smaller ad tech start-ups.

Komli, too, has been eyeing expansion in international markets. Earlier this month, Komli sold its Southeast Asian operations to a unit of Malaysian telecommunication company Axiata Group for close to $11.25 million. Komli also has operations in Australia and New Zealand.

Mukesh Agarwal, vice-president of Komli Media, said in an email interview earlier this week that the firm’s biggest goal was to ramp up its business on so-called programmatic advertising, which includes an array of technologies that automate the buying and placement of media inventory. Over 60% of media buying and placement is transacted via programmatic advertising in the US, he said.

The company also hived off its integrated cross-channel CRM (customer relationship management) platform RevX into a separate company earlier this week.

SVG Media group’s consolidated India revenue stands at over $50 million, the firm said in a statement. It currently has operations across India, Indonesia, the Middle East, Singapore, Japan, China and Australia.

According to SVG, over 75% of its business currently comes from mobile advertising.

“The Indian mobile advertising industry is expected to be valued at $3 billion by 2020. As per our estimate, SVG is now three times larger than its nearest competing mobile marketing platform in India," said Harish Bahl, founder of Smile Group, a business start-up incubator for digital media and technology.

“... the merger with Komli India will bolster the SVG platform to continue building and offering the best-in-the-industry media and technology infrastructure for its advertisers—owning the ability to deliver 100 million mobile-commerce transactions every year," he said.

Sadhana Chathurvedula in Bengaluru contributed to this story.

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