Robin Langford
1 day ago

WPP and Bain mull sale of Kantar Worldpanel data division for $6.5 billion

The deal could give WPP, which owns a 40% stake in the research company, a new source of cash after the ad giant suffered a $55 million profit drop in its latest earnings.

WPP and Bain mull sale of Kantar Worldpanel data division for $6.5 billion

Bain Capital and ad agency giant WPP are considering the sale of Kantar Worldpanel, according to a report in the Financial Times.

Kantar is one of the world’s largest market research companies alongside Nielsen, Ipsos and Circana, employing more than 35,000 employees, primarily in North America, Asia and Europe.

Its Worldpanel division produces Asia Pulse which tracks trends on the FMCG industry across 11 markets in the region, alongside countless other insights on global consumer data via its live panel and technology platforms. 

Collectively, the business provides data representing five billion consumers globally.

In January this year, Kantar sold its TV audience rating division to HIG Capital for $1 billion, streamlining its operations. In the same month, a merger with US-based Numerator, which was acquired in 2021, strengthened Kantar's data capabilities. 

A boost for WPP

The sale of Kantar at a high valuation would be welcome news for WPP, which recently reported a £43 million ($55 million) profit fall.  

In 2019, WPP sold a 60% stake in Kantar to Bain Capital, originally valuing Kantar at £3.2 billion ($4.1 billion), with long-term goals to transform the market research company into a brand strategy consultancy.

IPO versus sell-off

In a separate report, Sky News cited sources saying that Kantar's Worldpanel arm could be put up for sale later this year. The move has yet to be formally approved by Bain Capital and WPP Group.

Alternatively, Kantar’s owners could elect to float the entire group instead of pursuing the Worldpanel sale.

According to the FT, although an IPO was considered, current favourable conditions support divesting significant divisions rather than listing on the stock market. 

WPP has been approached for comment.

This article first appeared on Campaign Asia sister title Performance Marketing World.

Source:
Performance Marketing World

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