PARIS: French market research firm Ipsos S.A. is buying rival privately-owned British company Mori Ltd for 88 million pounds in equity and debt. Ipsos will also issue around 5 million pounds worth equity to key Mori executives, which is part of the deal.
Mori, based in London and Britain's leading polling company, carrying out opinion surveys on political and related affairs, was founded by American Robert Worcester in 1969. He owns 16.5 per cent stake in the company. Post-merger, he will assume the position of chairman of an advisory board for Ipsos's global public affairs unit.
Ipsos said in a statement that the acquisition will strengthen its position in Britain, the biggest in Europe for market research. Mori had sales of 44.2 million pounds in 2004, double that of Ipsos's British division and posted a profit of 5.6 million pounds. It has 460 staff and substantial presence abroad with investment in market and opinion research companies in Chile, Argentina, Uruguay, Paraguay and Malaysia.
It is 51 per cent owned by management and staff and the rest by Isis Equity Partners and Caledonia Investments. The two funds had bought the stake in Mori just 19 months ago. The funds will take cash in return for selling their shares.
Ipsos, founded by M. Truchot and M. Lech, 30 years ago, has offices in more than 40 countries and is the third largest survey-based market research company in the world. In 2004, the company had revenues of 605.6 million euros and in the first half of 2005, it reported a 12.5 per cent rise in interim revenues from 286 million euros to 321.8 million euros. In the first six months of the year, it posted profits before tax of 20.5 million euros, an increase of 31.4 per cent.
It said it expects to double its revenues with the acquisition and hopes to turn the combined brand to be the No 2 in Britain. There will be capital infusion when market conditions improve.
Posted
on : Tue, 11 Oct 2005 10:25 GMT | Business News
By : Mark Richardson
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