YouGov PLC (AIM:YOU) is acquiring the consumer panels business of rival market research business Gfk for €315mln (£268mln) to beef up its presence in the fast-moving consumer goods (FMCG) sector.
Gfk’s consumer business has a presence in 16 countries with 100,000 panellists and data on purchasing trends representing 50% of European GDP and 145mln households.
The group was ordered to divest the business as a European Commission condition to allow the merger of Gfk and NielsenIQ.
YouGov said consumer is an area where it is underrepresented currently, while the deal will also give it an opportunity to expand into the consumer data market in the US.
Average contract lengths are three years for the Gfk business, it added, with two-thirds of revenue coming from recurring subscriptions.
In the year to 31 December 2022, the Consumer Panel Business generated revenues of €134mln and adjusted profit before tax of €24mln.
YouGov launched a placing last night to help pay for the deal that raised £51.2mln gross at 920p per share, though this was less than the £55mln YouGov originally targeted.
Shares in the market researcher closed last night at 955p.
Stephan Shakespeare, YouGov chief executive, commented: "We are delighted to be acquiring one of the leaders in European household purchase data.
"This transaction is important for us strategically, extending our offering further into the under-penetrated FMCG sector, bringing with it long-standing relationships with a blue-chip client base."