Kantar Group's Strategic Move: Selling Kantar Media to H.I.G. Capital

Kantar Group, a prominent global market research entity based in London, has made a significant announcement regarding the potential sale of Kantar Media to H.I.G. Capital, a well-respected alternative investment firm. This deal promises to usher in a new era of growth and innovation for Kantar Media.

The proposed acquisition comes at a crucial time for Kantar Media, which has established itself in over 60 markets worldwide. With a focus on audience measurement and data analytics, Kantar Media is perfectly positioned to impact the media measurement ecosystem significantly. The company is well-known for its comprehensive suite of solutions, which empowers organizations to understand their audience behavior better and enhance their advertising effectiveness.

Patrick Béhar, the CEO of Kantar Media, is enthusiastic about the sale, indicating that this move aligns with his vision from over a year ago when he joined the company from Sky. Béhar has been dedicated to transforming Kantar Media into a tech-driven organization capable of shaping the future of the measurement industry through innovative cross-media solutions.

"This transaction would give us the resources and support to further accelerate our growth trajectory and solidify our position as the global leader in media measurement and analytics," stated Béhar. He expressed confidence that under H.I.G.'s management, the company would thrive and innovatively cater to its ever-evolving client needs globally.

Nishant Nayyar, the Managing Director at H.I.G. Capital, echoed Béhar's sentiment, expressing confidence in partnering with Kantar Media's seasoned team. He underscored the company’s strong reputation for providing vital data and insights to the media industry. Nayyar believes that with continued independence and leadership from Béhar, Kantar Media will be well-equipped to maintain its competitive edge and lead innovations in media measurement.

Chris Jansen, Kantar's Chief Executive, also shared his thoughts, stating that the operational independence of Kantar Media was aimed at consolidating its global leadership in audience measurement and that the partnership with H.I.G. marks an opportunity for ongoing technological and geographical investments.

The deal is estimated to be around $1 billion, with most of the payment anticipated to be made in cash. There are provisions for non-cash components, including investments tied to employee separation and an earn-out agreement. The transaction is expected to close later this year, pending customary legal and regulatory approvals.

Financial advisors for the transaction included J.P. Morgan and Jefferies for Kantar Group, while Morgan Stanley Co. International led the advisory for H.I.G. Capital, with ING also involved.

Kantar Media is a leader in media measurement, providing clients with valuable insights into audience behaviors and media consumption patterns. On the other hand, H.I.G. Capital, boasting $67 billion in capital under its management, specializes in investing in middle-market companies and has a notable track record of fostering business growth.

In summary, the proposed sale of Kantar Media to H.I.G. Capital is indicative of Kantar Group’s strategic direction towards enhancing its operational focus and commitment to media analytics. As both companies gear up for this new chapter, clients and stakeholders can expect exciting advancements and continued leadership in the media measurement sphere moving forward.