Nielsen Buys Arbitron for $1.26 Billion
On Tuesday, Nielsen Holdingsannounced it will acquire all outstanding shares of international media and marketing research firm Arbitron in an all-cash transaction, paying $48 per share. The boards of both companies have already approved the merger.
In a statement on the $1.2 billion merger, Nielsen boasted of the "unique radio measurement and listening information" that Arbitron will bring to Nielsen, and how bringing the two companies together will "enable broader measurement of consumer media behavior in more markets around the world."
Together, Nielsen says the company will generate $6 billion in combined annual revenue, with earnings before interest, taxes, depreciation, and amortization amounting to approximately $1.7 billion. Nielsen further says it expects to find $20 million worth of "cost synergies" that can be cut once the merger is complete.
Shares of Arbitrion were up nearly 24% in response to the announcement at $47.01 per share. Nielsen's shares, too, moved up 4% at $30.80.
The article Nielsen Buys Arbitron for $1.26 Billion originally appeared on Fool.com.Fool contributor Rich Smith and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.