Digital advertising platform AdOnMo is set to merge with community management platform Mygate in a proposed merger, with the combined entity being valued at approximately INR 3,500 crore.

Eternal, AdOnMo, Mygate and the relevant shareholders and parties have entered into definitive agreements for the transaction.

Mygate provides visitor management, security, finance and accounting, and community engagement solutions across 30,000 residential communities serving over six million households, while AdOnMo operates over 55,000 cloud-connected screens across 27 cities.

The proposed all-stock merger is preceded by a share swap, pursuant to which Eternal Limited (formerly, Zomato Limited), the largest investor in AdOnMo, and certain other investors of AdOnMo will transfer their shareholding in AdOnMo to Mygate in consideration for an equity stake in Mygate

Saraf and Partners acted for and advised Eternal on all aspects of the transaction. The transaction team was led by Vaibhav Kakkar (Senior Partner), Sahil Arora and Keshav Pareek (Partners) and consisted of Samiksha Bhargava and Devansh Sehgal (Associates)

Anoma Legal acted as legal advisor to Mygate and its founders, while Kaizen Law acted as legal advisor to AdOnMo and its founders.

The proposed consolidation will provide RWAs with community management tools and digital infrastructure for resident communications and monetisation of common areas.