Ipsos has reached an agreement with GfK to acquire 4 global divisions of GfK Research - Seite 2

(1) pharmaceutical and bio-tech companies; (2) medical and healthcare technology companies; and (3) companies to the extent that they are engaged in consumer healthcare (but not to the extent that they are engaged in any other businesses);
 

Public Affairs: this division includes all GfK research services globally, both quantitative and/or qualitative in nature, on either a continuous or ad-hoc basis, related to research on understanding societies, public opinion and corporate reputation; the Knowledge Networks panels are part of the Public Affairs division and represent a strategic asset that Ipsos would like to capitalise on.

Commenting on the transaction, Didier Truchot, said:

"We are delighted to buy 4 key divisions of GfK Research's global businesses operating currently in 25 markets, with strong management and committed professionals. The deal has been driven by our relentless focus on providing the best possible service to our clients and our ambition to become stronger in the areas of Customer Experience and Mystery Shopping, Innovation and User Experience, Healthcare, and last but not least, Public Affairs. This deal furthers our goal to implement the Total Understanding project, a growth plan as close as possible to clients needs, and to make the Ipsos brand synonymous with excellence in providing a better understanding of Society, Markets and People. I look forward to welcoming the GfK Research teams to Ipsos and together strengthening our skills in these four key business areas, reinforcing a global powerhouse in market research, with the best talents in the industry."

Peter Feld, Chief Executive Officer of GfK, commented:

"The divestment of our Custom Research business is the next important step in transforming GfK into a truly technology enabled data analytics provider with a clear client centric focus on our core assets in our key industries and markets. We are very happy that Ipsos decided to acquire our Custom Research business and with that will become a great future home for our Custom Research employees."

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The acquisition will be financed through the existing credit facilities of Ipsos. As at June 30^th, 2018, Ipsos had more than €300 million of available credit lines.

The enlarged group strength is expected to accelerate growth and generate improved margins in the medium term and to be accretive on Ipsos EPS.

The proposed transaction remains subject to mandatory clearances from relevant anti-trust authorities and is expected to close on or around September 30^th, 2018.