Nielsen has arranged to sell itself to a consortium of private equity firms led by Evergreen Coast Capital Corp in an agreement valued at $16 billion. The deal will see the affiliate of Elliott Investment Management – and Brookfield Business Partners will assume the measurement giant’s debt in the $28-per share offer.
The board for Nielsen voted unanimously to back the purchase proposal, which symbolizes a 10% premium over the consortium’s earlier bid and a 60% premium over Nielsen’s stock price before the possible sale surfaced in early March.
“After a thorough assessment, the Board determined that this transaction represents an attractive outcome for our shareholders by providing a cash takeout at a substantial premium, while supporting Nielsen’s commitment to our clients, employees and stakeholders,” Nielsen Chair James A. Attwood, said per Inside Radio.
“The consortium sees the full potential of Nielsen’s leadership position in the media industry and the unique value we deliver for our clients worldwide.”
Earlier this month, Nielsen declined what it dubbed an “unsolicited” buyout proposal of $9.13 billion cash plus the assumption of the company’s roughly $5 billion in debt.
The data and market measurement firm stated that the $25.40 per-share bid “significantly undervalued” the ratings company and wouldn’t sufficiently compensate shareholders for what it said is Nielsen’s growth prospects.
“After months of deep market analysis, industry diligence and management reviews, we are firmly convinced that Nielsen will continue to be the gold standard for audience measurement as it executes on the Nielsen One roadmap,” Evergreen and Elliott’s Managing Partner Jesse Cohn and Senior Portfolio Manager Marc Steinberg said in a joint statement.
“Having first invested in Nielsen nearly four years ago, we have a unique appreciation for the company’s ongoing relevance to the global, digital-first media ecosystem. Today’s outcome represents a significant win for Nielsen’s shareholders and for the business itself, as our multibillion-dollar investment will help Nielsen reinforce its transformation at this critical inflection point. We are pleased to partner with David and the existing management team to lead Nielsen after the transaction is completed.”