Rentrak Completes Kantar Purchase

All-share Deal Now Worth $128 Million
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Ratings measurement company Rentrak said it has completed the acquisition of Kantar Media’s U.S. television audience measurement assets in an all-stock deal worth about $128 million.

That is about $30 million higher than the company first projected when it announced the deal in October. At that time, Rentrak agreed to issue 1.53 million shares of its stock (priced at $64.51 each) for the Kantar television audience measurement assets, which include Kantar’s customer contacts and relationships in the U.S. measurement market. Rentrak’s stock has risen about 30% since the deal was first announced – it was priced at $84.10 each on Nov. 28, the day the deal closed, which is the reason for increase in the purchase price.

As part of the deal, Rentrak will also integrate its national and local TV measurement with a number of Kantar’s U.S.-based services that focus on digital media, advertising expenditure and purchase data. The integration will provide advertisers, agencies, TV networks, multichannel video program distributors (MVPDs) and local television stations throughout the U.S. with tools to understand consumers’ purchasing habits and the ability to link TV viewing habits with purchase and other behavior in the United States.

In a statement, Rentrak said it expects the acquisition to produce multiple new revenue streams, both directly and through anticipated future joint marketing agreements with Kantar and Group M. Rentrak expects to add about $7 million to $9 million in revenue in fiscal 2016 as a result of the transaction, which is expected to be slightly accretive in fiscal 2016.

In connection with the acquisition, Kantar parent 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 outstanding stock as of the closing date.

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