SingTel says to buy digital advertisers for $448.6 million

A SingTel signage is pictured at their head office in Singapore on May 15, 2014. -- PHOTO: REUTERS
A SingTel signage is pictured at their head office in Singapore on May 15, 2014. -- PHOTO: REUTERS

SINGAPORE (Reuters) - Singapore Telecommunications said on Wednesday it plans to buy two U.S.-based advertising companies for a total of US$359 million ($448.6 million) to strengthen its digital marketing profile.

Amobee Group, a wholly-owned subsidiary of SingTel, plans to acquire the entire stake of Adconion Direct North America and Adconion Australia for US$209 million, excluding debt and subject to working capital adjustments.

SingTel also plans to take over Kontera Technologies, a digital content intelligence and marketing technology company based in the United States, for about US$150 million, subject to working capital adjustments.

The largest telecommunications operator in Southeast Asia will also provide up to US$20 million and US$5.8 million respectively, to each company to retain key staff.

The transactions are subject to fulfilments of certain conditions, SingTel said in a statement.