News notes
Netherlands-based VNU has signed an agreement to sell its Claritas Europe business to Acxiom Corporation for EUR 33.5 million. Closing was expected around year-end 2003. The company expects a book loss of EUR 25-30 million for the divestiture. VNU announced in January 2003 its intent to explore strategic options, including the possible sale, for its Claritas Europe business, as it operated with little synergy with the rest of VNU’s Marketing Information business in the European marketplace.
Claritas Europe has nine offices in seven countries and is run independently from Claritas Inc. in the U.S., which remains part of VNU’s Marketing Information group. Trade Dimensions and Spectra Marketing Systems, both part of Claritas Europe, will remain part of VNU’s Marketing Information, as their activities are closely aligned with VNU’s mainstream marketing information businesses.
Separately, the firm issued a trading update which included plans to shed almost 700 jobs over the next three years in its Marketing Information group, partly from natural attrition.
Acquisitions
London-based United Business Media has acquired Eurisko , a Milan, Italy-based market research company, for EUR 33 million. Through Eurisko, NOP World can now market its products directly into Italy and can offer a wider geographical presence to its clients. In 2002 Eurisko had revenues of EUR 28 million and EBIT of EUR 4 million. The purchase price represents 1.2 times revenue and 8.3 times EBIT.
NetRatings, Inc., Milpitas, Calif., has acquired a majority interest in RedSheriff , an Internet audience measurement firm. Under the terms of the agreement signed by NetRatings and RedSheriff’s majority shareholder, Morgan Grenfell Private Equity Limited, as manager of various funds of Deutsche Equity Partners IV (MGPE), NetRatings has acquired MGPE’s 58 percent stake in RedSheriff for approximately $12 million in cash. RedSheriff’s shareholders agreement requires NetRatings to offer to purchase all remaining RedSheriff shares through a process that was expected to extend through the end of January. NetRatings anticipates purchasing additional shares and is prepared to acquire 100 percent of the company.
Alliances/strategic partnerships
San Francisco research firm Socratic Technologies has completed negotiations to enter into an expanded partnership relationship with Greenfield Online , Wilton, Conn. This agreement is a part of Socratic Technologies’ 2004 strategic plan to expand its focus to include product development and branding work in the consumer products market.
Arbitron Inc., New York, has signed a license agreement with research firm TNS which gives TNS the right to use the Portable People Meter system and its audio encoding technology for radio and television audience measurement in selected countries in Europe, Asia-Pacific, the Middle East and Africa.
Opinion Research Corporation (ORC), Princeton, N.J., has formed a strategic alliance with MarketBasics , a Boston marketing research firm. MarketBasics will be a regional office in the Boston area for ORC as ORC seeks to expand its service offerings.
The Non-Food Tracking division of the GfK Group, Nuremberg, Germany, and The NPD Group , Port Washington, N.Y., are formalizing and gearing up their 20-year-long cooperative relationship. A new holding company will be set up to coordinate business in Europe, the Middle East and Asia. Retail research activities in the U.S., Canada, Mexico and part of Latin America will be offered and coordinated by NPD Intelect. The NPD Group holds 75 percent of the shares in the company, with the remaining 25 percent held by the GfK Group. NPD Intelect anticipated sales totaling EUR 45 million for 2003. A new holding company is being established in Latin America to coordinate activities in Brazil, Chile and Argentina. GfK has a 65 percent stake in the company, with the other 35 percent of the shares being held by The NPD Group. The partners have also established a global coordination board to: develop global business policy; coordinate the relationship between clients and partners in the regional holdings concerned; and evolve a global service concept.
The Associated Press and Ipsos Public Affairs have formed a partnership for public opinion polling. They will collaborate on development and distribution of twice-a-month national polls, occasional state polls and quarterly international polls.
Association/organization news
Britain’s Market Research Society (MRS) has appointed Jeremy Bullmore, former chairman of London-based J. Walter Thompson, as its next president. He will assume the role this spring. Following his 33-year career at J. Walter Thompson, Bullmore was appointed a non-executive director of WPP in 1988, a position he still holds. He was a non-executive director of the Guardian Media Group for 10 years and from 1981-1987 served as chairman of the Advertising Association.
Awards/rankings
Inc. magazine has ranked The Myers Group , a Snellville, Ga., health care survey research company, number 124 on its Inc. 500 list of the fastest-growing private companies in the country. The firm had a five-year sales growth of 1,266 percent.
New accounts/projects
Herndon, Va.-based WebSurveyor Corporation announced that NASDAQ has selected WebSurveyor’s online survey solutions for its employee and customer feedback regarding training programs and other corporate initiatives.
Anheuser-Busch Inc. has selected the InfoScan Convenience Store National Service of Information Resources Inc., Chicago, to help it develop, implement and evaluate sales and marketing programs.
New companies/new divisions/ relocations/expansions
Milwaukee-based research firm Market Probe has opened a new branch office in Sydney, Australia. In conjunction, Peter Mills has been named Australian country manager.
Perseus Development Corporation , Braintree, Mass. has opened a new office in St. Joseph, Mich. The office is opening to support Perseus’ business within the automotive industry. Barry Eaton, the Perseus Midwest director of sales, will transfer from the headquarters offices to Michigan to manage the office.
Seattle-based Global Market Insite (GMI) has opened an Asia-Pacific regional office in Sydney, Australia. The office will be headed by Bob Chua.
Ted Kendall, who co-founded online qualitative software firm QualTalk, has left QualTalk to start a new venture. Operating under the umbrella of Glow Teknologies , a Greenwood Village, Colo., software company specializing in incentive compensation systems, Kendall has formed the Market Intelligence Services division to serve as a provider of market research services.
East Hanover, N.J., research firm Market Measures/Cozint has formed a new emerging markets team, focused on the market research needs of emerging pharmaceutical, medical device/diagnostics and biotech companies. The new team also will offer services to organizations with a specialized interest in the pharmaceutical and health care industries. The team will be led by Cindy Blodgett, executive vice president of Market Measures/Cozint.
Opinion Research Corporation , Princeton, N.J., has established the ORC Sports Research Desk and has hired Seth Levenstein, formerly president of Dynasty Sports Marketing, as director.
John Aitchison, previously an online research director at TNS, has opened First Line Research , an online market research firm based in York, England.