Audience measurement and analytics company Nielsen has agreed to be acquired by a private equity consortium (led by Evergreen Coast Capital and Brookfield Business Partners) in a deal worth $16B. The agreement – which includes the assumption of debt – represents a higher value proposal than previously put to Nielsen by the consortium. The previous offer valued the company at $15B, with each share of the company valued at $25. This new proposal offers $28 per share and a 60% premium over Nielsen’s unaffected stock price.
The transaction includes a 45-day “go shop” period where the measurement company can solicit other acquisition offers. The agreement also stipulates that should Nielsen terminate the agreement in favour of a better deal, Nielsen would be required to pay a $102 million termination fee to the private equity consortium. After news of the transaction broke, Nielsen’s stock price rose by 20%.
James A. Attwood, Chairperson of Nielsen’s Board of Directors, said: “After a thorough assessment, the Board determined that this transaction represents an attractive outcome for our shareholders by providing a cash takeout at a substantial premium, while supporting Nielsen’s commitment to our clients, employees and stakeholders. The Consortium sees the full potential of Nielsen’s leadership position in the media industry and the unique value we deliver for our clients worldwide.”
Dave Gregory, Managing Partner, Brookfield Business Partners, commented: “Nielsen is deeply embedded in the media ecosystem and a trusted service provider to its customers. As a private company, Nielsen will be even better positioned to deliver the best measures of consumers’ rapidly changing behaviours across all channels and platforms. We are pleased to invest in this iconic company and help lead the industry into the next generation of audience measurement.”
