Tech Mahindra acquires BORN Group

IT services firm Tech Mahindra Ltd has acquired BORN Group, a New York based digital content and production agency for $95 Million in a cash deal. BORN Group’s services include consulting, content creation, maintenance and hosting services, digital and social marketing, among others. Its clients include Google, Tata, Red Bull and Tag Heuer.

BORN currently has offices in New York City, London, Hong Kong, Singapore and India and employs over 1100 people. The company is owned by private equity firm True North and Zodius Capital. True North acquired a controlling stake in the company in 2011, when it was known as Group FMG. In 2012 Group FMG acquired New York-based creative digital agency Pod1 Inc. The company rebranded itself as BORN Group in 2014.

BORN recorded a revenue of $50 million in calendar year 2018, compared to $39 million and $36 million in the preceding two years. Tech Mahindra Ltd will acquire the Indian subsidiary of Born Group, while Tech Mahindra Pte., the IT firm’s Singapore arm will acquire all other entities of Born, with the transaction expected to close by November 15, 2019.

While the enterprise value of the company has been pegged at $95 million, the transaction also includes a future pay-out of $25 million linked to achievement of financial targets for the financial year ending 31 December 2019. 

Dentsu Aegis acquires WATConsult

Dentsu Inc. is an International advertising and public relations company whose headquarters are located in the Dentsu Building in the Shiodome district of Minato, Tokyo. The Company origins as a media representative producing the first newspaper advertisements and the first television commercials in Japan. The company now offers a range of services, from traditional and creative marketing to specialty disciplines such as sports marketing, digital contents, PR, and a growing range of communication services.

Dentsu reached an agreement with the principal shareholder of Mumbai based WATConsult, a digital agency, to acquire a 90% stake in the company, which will ultimately be increased in steps to 100%. WATConsult will become part of Isobar, one of the Dentsu Group’s global network brands, and will be referred to as WATConsult linked by Isobar.

WATConsult, founded in 2007 as a Social Media agency, has developed into a digital agency offering services such as digital creative, digital media planning and buying, development of campaigns that utilize social and digital media, production of digital media applications and digital video, and online reputation management. Its clients include Godrej, Tata, Bajaj, Mahindra, SAP, and Nikon. WATConsult employs more than 160 people across the Mumbai, Delhi, Bengaluru, and Kolkata and has annual revenue of nearly Rs. 30 Crore.

A wholly owned subsidiary of Dentsu Inc, the Dentsu India Group comprises three standalone full service-advertising agencies – Dentsu Communications, Dentsu Marcom, and Dentsu Creative Impact as well as Dentsu Media and Dentsu Digital. Tokyo based Dentsu Inc has a presence in 24 countries across five continents. In 2012, it acquired 51 percent stake in Mumbai based advertising agency Taproot India Communication Pvt Ltd for an undisclosed sum.