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Nielsen (NLSN) to Go Private With $16B Acquisition Deal
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Nielsen Holdings has signed an agreement for its acquisition by a consortium of private equity firms, following approval from the board of directors. It is to be noted that the stock soared 20.3% after the U.S. market closed on Tuesday following the news.
The deal is led by Evergreen Coast Capital Corporation, an affiliate of Elliott Investment Management and Brookfield Business Partners. Other institutional partners are also involved in it.
The consortium has offered Nielsen $28 per share for this acquisition, giving Nielsen an enterprise value of $16 billion. The transaction value represents a 10% premium over the group’s previous offer. It is also 60% above the stock traded prior to the speculation of the Nielsen buyout.
Brookfield will make an investment of approximately $2.65 billion by way of preferred equity, convertible into 45% of Nielsen’s common equity. Brookfield also stated that it would be actively involved in Nielsen’s governance.
Further, the agreement includes a "go-shop" clause that allows Nielsen to negotiate with parties offering alternative buyout proposals in the next 45 days.
The acquisition is expected to be completed later this year, following approval from shareholders, regulators and the U.K. court.
In additionr, the company announced that it will no longer commence share repurchases, which the board of directors previously authorized.
Nielsen has been a leader in audience measurement and a trusted service provider to customers for a long time. After privatization, it will be better positioned to provide improved solutions to customers across all channels and platforms.
Further, the company is aggressively working toward delivering advanced audience measurement solutions to retain momentum among customers, as viewers are increasingly shifting to streaming video services.
In this regard, its initiative toward a cross-platform measurement solution, Nielsen ONE, remains noteworthy. Nielsen ONE provides advertisers and publishers with audience reach and frequency metrics across linear programming, streaming, connected TV, and digital channels.
Further, the company has globally expanded by launching campaign measurement in 40 new markets with leading digital publishers.
We believe the acquisition is expected to add strength to the operational efficiency of the company further. Additionally, the inflow of resources owing to this buyout will aid the company in executing its growth strategies well.
Zacks Rank & Other Stocks to Consider
Currently, Nielsen carries a Zacks Rank #2 (Buy).
Investors interested in the business services sector can also consider stocks like Cross Country Healthcare (CCRN - Free Report) , The Hackett Group (HCKT - Free Report) and The Interpublic Group of Companies (IPG - Free Report) . While Cross Country Healthcare sports a Zacks Rank #1 (Strong Buy), The Hackett Group and The Interpublic Group of Companies carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cross Country Healthcare has gained 74.5% in the past year. The long-term earnings growth rate for the stock is currently projected at 6.6%.
The Hackett Group has gained 42.8% in the past year. The long-term earnings growth rate for the stock is currently projected at 15.5%.
The Interpublic Group of Companies has gained 27.4% in the past year. The long-term earnings growth rate for the stock is currently projected at 4.1%.
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Nielsen (NLSN) to Go Private With $16B Acquisition Deal
Nielsen Holdings has signed an agreement for its acquisition by a consortium of private equity firms, following approval from the board of directors. It is to be noted that the stock soared 20.3% after the U.S. market closed on Tuesday following the news.
The deal is led by Evergreen Coast Capital Corporation, an affiliate of Elliott Investment Management and Brookfield Business Partners. Other institutional partners are also involved in it.
The consortium has offered Nielsen $28 per share for this acquisition, giving Nielsen an enterprise value of $16 billion. The transaction value represents a 10% premium over the group’s previous offer. It is also 60% above the stock traded prior to the speculation of the Nielsen buyout.
Brookfield will make an investment of approximately $2.65 billion by way of preferred equity, convertible into 45% of Nielsen’s common equity. Brookfield also stated that it would be actively involved in Nielsen’s governance.
Further, the agreement includes a "go-shop" clause that allows Nielsen to negotiate with parties offering alternative buyout proposals in the next 45 days.
The acquisition is expected to be completed later this year, following approval from shareholders, regulators and the U.K. court.
In additionr, the company announced that it will no longer commence share repurchases, which the board of directors previously authorized.
Nielsen Holdings Plc Price and Consensus
Nielsen Holdings Plc price-consensus-chart | Nielsen Holdings Plc Quote
Wrapping Up
Nielsen has been a leader in audience measurement and a trusted service provider to customers for a long time. After privatization, it will be better positioned to provide improved solutions to customers across all channels and platforms.
Further, the company is aggressively working toward delivering advanced audience measurement solutions to retain momentum among customers, as viewers are increasingly shifting to streaming video services.
In this regard, its initiative toward a cross-platform measurement solution, Nielsen ONE, remains noteworthy. Nielsen ONE provides advertisers and publishers with audience reach and frequency metrics across linear programming, streaming, connected TV, and digital channels.
Further, the company has globally expanded by launching campaign measurement in 40 new markets with leading digital publishers.
We believe the acquisition is expected to add strength to the operational efficiency of the company further. Additionally, the inflow of resources owing to this buyout will aid the company in executing its growth strategies well.
Zacks Rank & Other Stocks to Consider
Currently, Nielsen carries a Zacks Rank #2 (Buy).
Investors interested in the business services sector can also consider stocks like Cross Country Healthcare (CCRN - Free Report) , The Hackett Group (HCKT - Free Report) and The Interpublic Group of Companies (IPG - Free Report) . While Cross Country Healthcare sports a Zacks Rank #1 (Strong Buy), The Hackett Group and The Interpublic Group of Companies carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cross Country Healthcare has gained 74.5% in the past year. The long-term earnings growth rate for the stock is currently projected at 6.6%.
The Hackett Group has gained 42.8% in the past year. The long-term earnings growth rate for the stock is currently projected at 15.5%.
The Interpublic Group of Companies has gained 27.4% in the past year. The long-term earnings growth rate for the stock is currently projected at 4.1%.