Pressman Advertising and Signpost India to merge their businesses
The promoters of both companies have signed a definitive memorandum of understanding to pool their resources to create a larger entity, which will be mutually beneficial to all stakeholders.
The merger is subject to legal, regulatory and other approvals, including consents from relevant third parties, the two said in a statement.
The proposed merger will result in streamlined operations and profitability and, with the combined customer base of both companies, should result in accelerated business growth, Pressman said.
This will help pool the experience, expertise, resources and customer base of both companies; offer a wider range of services in the areas of advertising and promotion with an emphasis on digital media and emerging technologies.
“We have always strived to work in the best interests of our shareholders and this alliance will enable rapid growth with a broader offering and the combined strength of both entities and will significantly improve shareholder value,” said Niren Suchanti, CMD. , Pressman Advertising.
Shripad Ashtekar, CEO and Co-Founder of Signpost, said, “We are very excited to work with Pressman, a company with an impeccable track record. We have been a pioneer in DOOH advertising as well as in several areas of emerging technologies and are confident that our combination will result in accelerated business growth to the benefit of all stakeholders.
Pressman formed a committee of directors to facilitate the merger process, including the appointment of registered appraisers, investment bankers, legal consultants and other intermediaries.
Pressman is an independent advertising agency focused primarily on print and digital advertising and public relations. It is a debt-free business with cash reserves of around Rs 40 crore.
Signpost, meanwhile, is an independent, ISO-certified DOOH company with experience in implementing large-scale, public-facing projects, including street furniture, mass transit, public bike sharing and the system Internet traffic monitoring with more than 32 government authorities across the country.
It serves over 100 businesses, UAPs, tourism brands and MSMEs through its own network of 11 offices.
It also has a series of projects which include large format digital billboards and a traffic measurement system at Mumbai International Airport and a digital analytics project for traffic coverage across the city of Bangalore.
In the financial year 2020, Signpost recorded revenue of Rs 425.40 crore and net profit of Rs 17.63 crore. Due to the severe impact of COVID in FY21, its revenue fell to Rs 185.54 crore and PAT to Rs 5.20 crore.