Acquisition
YouGov PLC
08 December 2006
YouGov plc
YouGov enters US market through strategic partnership with Polimetrix
Strategic Partnership
8 December 2006 - YouGov plc ('YouGov' or the 'Company'), the UK's leading
online market research agency, announced today that it has committed to make a
significant strategic investment in Polimetrix Inc ('Polimetrix'), an online
political and social research agency founded in 2004 by Stanford Professor
Douglas Rivers.
Under the terms of the transaction, YouGov will subscribe for 5,360,000 new
shares in Polimetrix, a Delaware corporation based in Palo Alto, for
approximately £3.8 million in return for a 32% shareholding. At closing, YouGov
will also have an option to purchase the remaining outstanding shares and
options of Polimetrix, within 30 months of this announcement. The initial
consideration will be met from the Company's existing cash reserves. The Board
of Polimetrix will be made up of 5 directors including two YouGov
representatives Nadhim Zahawi and Stephan Shakespeare.
The funds from this investment will be used to bring YouGov products to the
American market and to expand Polimetrix's capabilities through the
cross-licensing of technology and intellectual property as well as a joint
selling arrangement which will allow YouGov to sell Polimetrix's products
internationally, excluding the USA and Canada, and Polimetrix to sell YouGov's
products, including BrandIndex, in the USA and Canada. The Board anticipates
that the investment will be earnings enhancing in the first full year of
ownership.
Polimetrix was founded in 2004 by Stanford University Political Science
Professor Douglas Rivers and has offices in Palo Alto, California and Washington
, D.C. Polimetrix currently has a staff of twenty experts in survey research,
political science, statistics, and information technology, eight of whom have
PhDs in survey methodology and political science. Polimetrix maintains the
PollingPoint panel, which is comprised of 1.08 million U.S. residents.
Polimetrix has distinguished itself by achieving the same high level of proven
accuracy in US elections, as YouGov has in Britain and which has made YouGov the
pre-eminent polling organisation in the United Kingdom. In 2005, Polimetrix
accurately forecast the outcome of seven propositions in the California Special
Election, surpassing all but one other traditional pollster. In 2006, Polimetrix
conducted the largest ever congressional election study, covering 44 Senate and
gubernatorial races. The clients for this project were 32 American Universities,
including Harvard, Yale, Stanford, MIT and UCLA. The Polimetrix forecasts had a
high degree of quantitative accuracy, which is substantially better than other
US Internet surveys.
Commenting on the move into the American market Nadhim Zahawi, Co-founder and
Chief Executive of YouGov, said:
'The Polimetrix team has a successful track record in the rapidly expanding
online research market and shares our strong belief in the benefits of
competitively priced, accurate and timely online market research. The team at
Polimetrix share our passion and cultural beliefs. YouGov has already had
considerable interest in both BrandIndex and YGX from international companies.
Acquiring this stake in Polimetrix is consistent with our prudent approach to
entering new markets, such as the US, where we are looking to build our
business.'
Stephan Shakespeare, Co-founder and Chief Innovation Officer of YouGov,
commented: 'The two companies are ideally suited to become the pre-eminent
pioneers of innovative market and opinion research in America. While online
methodology has been widely embraced by the industry in America, the use of
internet for public and media work lags behind the UK. The Polimetrix approach
of producing large scale, accurate data for highly respected public clients,
exactly mirrors that of YouGov.'
Commenting on the opportunity to launch BrandIndex in North America, Douglas
Rivers CEO of Polimetrix commented, 'We are very excited about introducing
BrandIndex to America, the world's largest research market. It would have been
impossible before the existence of the Internet to provide brand owners with
instant feedback about the performance and perceptions of their companies and
products. This promises to bring a new era to brand stewardship at a time when
corporates are increasingly focused on the value and perception of their
brands.'
Current Trading
At today's AGM, Peter Kellner, Chairman of the Board of YouGov, will confirm
that the current year has started well with trading in both the UK and Middle
East in line with the Board's expectations.
ENQUIRIES:
YouGov plc Tel: +44 (0)207 618 3010
Nadhim Zahawi
Katherine Lee
Polimetrix Inc Tel: +1 650 462 8002
Douglas Rivers
Financial Dynamics Tel: +44 (0)20 7831 3113
Tim Spratt
This information is provided by RNS
The company news service from the London Stock Exchange
UA