Rentrak Completes Kantar TV Purchase

The $128 million deal creates, Rentrak says, creates a massive and passive measurement service.

Rentrak today announced it has completed the acquisition of the U.S. television measurement business of WPP’s Kantar business unit for 1,526,790 restricted shares of Rentrak common stock.  Based on the closing price of Rentrak’s common stock on Nov. 28, the shares have an approximate value of $128 million.

The deal was announced in October.

The transaction includes Kantar Media’s customer contracts and customer relationships involved in U.S. television measurement, which Rentrak says offers “clarity and simplicity for clients in the U.S. TV ratings marketplace with a single massive and passive TV measurement service.”

Rentrak said it expects the acquisition to produce multiple long-term revenue streams directly, as well as from anticipated future joint marketing agreements with Kantar and its expanded relationship with, and endorsement from, GroupM. Rentrak expects to add approximately $7 to $9 million in revenue in fiscal 2016 as a result of the transaction, which is expected to be slightly accretive in fiscal 2016.

Related Story  Collins | Solving The Complexities Of Software Solutions

In connection with the acquisition, WPP also purchased additional restricted shares of Rentrak common stock from the company for $56 million in cash, giving WPP an ownership stake of 16.7% of Rentrak’s stock as of the closing date.

Comments (0)

Leave a Reply

More News