Pressman Advertising Ltd. and its promoters have signed a Memorandum of Understanding (Mou) with Signpost India Pvt. Ltd. and its promoters to merge and create a larger entity.
The merger proposal is subject to statutory, regulatory and other approvals including relevant third-party consent.
“This [move] will help pool in the experience, expertise, resources and client base of the two companies; offer a larger bouquet of services in the areas of advertising and promotion with focus on digital media and emerging technologies,” Pressman said in a statement.
“The proposed merger shall result in streamlining of operations and cost efficiency and together with the combined clientele of both the companies, should result in accelerated business growth,” the firm added.
The company has constituted a Committee of Directors to facilitate the process of merger, including appointment of registered valuers, merchant bankers, legal consultants and other intermediaries.
Signpost is an independent ISO-certified digital out-of-home enterprise (DOOH). It has experience in implementing large scale public-oriented projects, including street furniture, transit, public bicycle sharing and Internet traffic monitoring system with more than 32 government authorities across the country.
In FY20, Signpost reported a revenue of ₹425.40 crore and net profit of ₹17.63 crore. It attributed the decline in revenue to ₹185.54 crore and and net profit to ₹5.20 crore the subsequent year to the effects of the pandemic..
Pressman is an independent advertising agency engaged largely in print advertising, public relations and digital advertising. It is a debt-free company with cash reserves of about ₹40 crore.
Dr. Niren Suchanti, chairman & managing director, Pressman Advertising, said, “it has always been our endeavour to work in the interest of our shareholders and this alliance will enable rapid growth with a larger offering and the combined strength of the two entities and significantly enhance shareholders’ value.”
Shripad Ashtekar, CEO and co-founder of Signpost, said, “We have been a pioneer in digital out-of-home advertising as well as in several areas of emerging technologies and are confident that our coming together will result in accelerated growth of business for the benefit of all stakeholders.”