Hyderabad-based digital marketing firm Ybrant Digital on Monday said it plans to acquire a minority stake in Israel-based Web 3.0 that also operates in similar domain, for an undisclosed amount.

"We have signed a letter of intent to acquire minority stake in Web 3.0 which specialises in mobile marketing...The due diligence is likely to take about two months," Ybrant Digital Chairman and CEO Suresh Reddy told PTI without disclosing details such as the quantum of stake and valuation.

If completed, this would be eighth acquisition for Ybrant in the last five years. "Ybrant has acquired 100 per cent stake in seven digital marketing companies in the last five years. These are US-based MediaOne and Ad Dynamic, Serbian firm VoloMP, Israel's Oridion, Argentina's DreamAd, Australia-based Max Interactive and Internet search engine Lycos," he said.

When asked about funding of the acquisition, Reddy said: "So far we have raised USD 100 million (about Rs 450 crore) through a combination of debt and equity. There is enough cash available to fund the acquisition."

Earlier this year, Ybrant had raised USD 48 million (over Rs 215 crore) from ICCI and Oak India Investments to fund its expansion plans.

He said as per estimates, global spends on mobile marketing, advertising and messaging will exceed USD 3.3 billion in 2011 and reach USD 20.6 billion by 2015.

"Search ads and location-based ads will particularly drive growth. Brand spending on mobile advertising will grow from 0.5 per cent of the total current advertising budgets to over 4 per cent in 2015. Asia has and will continue to dominate global mobile ad spend," he said.

Ybrant Digital offers digital marketing solutions to businesses, agencies, and online publishers worldwide and has a presence in 18 countries. It does not disclose its revenues.