UK-based media and marketing analytics firm Ebiquity plc is to sell its Advertising Intelligence (AdIntel) division to Nielsen for GBP 26 million, payable in cash on completion.
Ebiquity said the sale would allow it to focus on its faster growing, higher margin, tech-enabled consultancy practices, Media Value Measurement and Marketing Performance Optimization. The remaining Market Intelligence business is focused on data capture and storage and operates in 'a distinct marketplace' according to the group.
In a pre-close trading statement also issued this week, Ebiquity announced revenues up 4.9%, or 1.5% on a constant currency basis, to £87.6m. Excluding the Market Intelligence segment, of which more than 90 percent is being sold to Nielsen, revenue grew by 7.0%, or 3.3% on a constant currency basis, with the second half particularly strong, as was growth outside the US.
Last month, the firm launched an independent consultancy practice called Ebiquity Tech, which will advise on clients' use of marketing technology and customer data.
The AdIntel business, with locations in the UK, Australia, Germany and the US, generated unaudited revenues of £21.9m in 2017 and operating profit of £4.4m before the allocation of central overheads.
Michael Karg (pictured), CEO Ebiquity plc, says of the sale: 'This is a transformational moment for Ebiquity. Our Growth Acceleration Plan, which focuses on seizing market opportunities in our faster growing MVM and MPO segments, will be enhanced through our ability to invest in these services to seize and establish a leadership position. Nielsen is the logical home for our colleagues in MI and we wish them every success for the future'.
The Disposal is subject to certain conditions, including approval from the Competition and Markets Authority, and is expected in Q2 2018.
Web sites: www.ebiquity.com and www.nielsen.com .
All articles 2006-21 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.