Acquisition

RNS Number : 1961E

YouGov PLC

04 April 2011

 



4 April 2011

Acquisition of Definitive Insights extends YouGov's presence

in US corporate market research

- brings expertise in information technology and marketing science

Highlights

·      YouGov plc, the international online market research agency, announced today that it has agreed to acquire Definitive Insights ("DI"), a strategic market research consultancy based in Portland, Oregon.

·      This acquisition will further boost YouGov's business in the US corporate research market adding a West Coast presence that complements the Harrison Group and Marketing Insights units based in the Eastern US that can easily be supported by YouGov's US operations team in Palo Alto, California

·      DI is a custom research and consulting company focussed on serving industries such as information technology, pharmaceuticals, financials services and energy. The majority of its data collection is conducted online. DI's research specialisms include market assessment, product and price optimization, customer satisfaction and advanced analytics. Its major clients include leading global IT groups, a global pharmaceutical business and a leading US electric utility company.

·      DI was founded in 2009 by four eminent market researchers who have held leadership positions at global research firms and major consumer brands and have a record of innovation in research approaches and methodologies. They and their 14 staff will all be joining YouGov's US team. DI's revenues in 2010, its first full year of operation, were $4 million (£2.5 million). 

·      The initial purchase consideration payable for DI will be £0.6 million ($1 million) with additional earn-out payments dependent on the performance of the business during the two years ended 31 January 2013.  The total purchase consideration based on DI's business plans is expected to be approximately £3 million.  

·      The YouGov  Board believes that the benefits of this acquisition include:

o  enhancement of earnings in the first full year after acquisition;

o  new blue-chip customers in key sectors that add to our existing US customer base;

o  extension of YouGov's reach within the $8bn corporate market research sector in the United States;

o  the opportunity further to leverage YouGov's proprietary technology, online panel and analytics capability in the US market.

Background to and reasons for the Acquisition

YouGov has made good progress developing its business in the US. It has a high quality engaged panel, a track record for accuracy through its polling, and following the acquisition of Harrison Group in August 2010 has expanded its US corporate market research business. YouGov's syndicated products, including BrandIndex, have grown sales as well as customers, who understand the competitive advantage they can derive from real time, accurate data.

With the addition of DI, YouGov will have ninety staff in the US and more than 460 worldwide.

Commenting on the acquisition, Stephan Shakespeare, CEO of YouGov, said:

"Definitive Insights will further help us to scale up the Group's commercial market research business in the USA. The excellent reputation of the founders and their staff and the high quality of their work is reflected in a superb client list which they have built up rapidly since DI was set up. We are very pleased to add DI to our growing US and global network."  

Doss Struse, Managing Partner of Definitive Insights, commented:

"Definitive Insights and YouGov share a vision for creating a research business driven by innovation and passion that delivers tangible results for clients. YouGov has demonstrated internationally its leadership in online research quality and accuracy and has created a platform for research excellence. Becoming part of YouGov gives Definitive Insights scale and global reach, which are important to our key clients."

Enquiries:

YouGov plc
Stephan Shakespeare / Alan Newman	[phone]
Definitive Insights
Doss Struse Financial Dynamics	[phone]
Charles Palmer /	[phone]
Grant Thornton Corporate Finance - Nominated Adviser
Gerry Beaney / Colin Aaronson	[phone]
Numis
James Serjeant/ Nick Westlake	[phone]

About YouGov plc

YouGov is an international, full-service research company with operations in UK, US, Germany, Scandinavia and Middle East. It primarily uses online panels to provide quantitative and qualitative research across a range of industries, including consumer products, financial services, public sector, technology and telecom and media.  YouGov's full service offerings span added-value consultancy, syndicated research products, market intelligence reports, omnibus and field and tab services.

YouGov has been acclaimed as one of the world's most accurate pollsters and dominates Britain's media polling.  One of the most quoted agencies in Britain, YouGov has a well-documented and published track record illustrating the success of its survey methods and quality of its client service work.

For further information visit http://corp.yougov.com.

 

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