TNS Acquires NFO

Following several months of speculation, TNS has today announced the proposed acquisition of NFO WorldGroup from Interpublic for $425 million. The acquisition will consolidate TNS's position as one of the top three global companies in the market research industry.

The acquisition will strengthen the position of TNS in the key US market, where the group already generates almost a quarter of its business. NFO also brings to TNS one of the leading US access panels and strengthens its Internet data collection capabilities.

Of the $425m consideration, $400m will be paid in cash on completion, and $25m will be satisfied by the issue of new TNS shares to Interpublic on completion.

It is expected that the acquisition will deliver annualised synergies of more than £3m by the end of 2003 and in excess of £10m in 2004, resulting primarily from operational costs efficiencies. Initial one-off integration costs of approximately £5-6m are expected in 2003.

According to Mike Kirkham, CEO of TNS, 'The US is particularly important to us because many of the world's large multinationals are headquartered there. It will also help us to gain access to consumer packaged goods market where we have been underweight so far.'

Tony Cowling, Chairman of TNS added 'We are delighted to be acquiring NFO, a high quality company with a strong management team. As well as bringing into the group one of the US' leading access panels, the acquisition is in line with the strategy that has delivered profitable growth over the past few years. We believe that, by combining NFO with TNS, we will be able to generate significant cost and revenue synergies and that this latest step in the group's development provides an excellent opportunity to create further shareholder value.'

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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