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The world of market research is buzzing with news as multibillion-dollar giant Kantar prepares for a significant shift in ownership. Bain Capital and WPP are looking to break up and sell Kantar, a move that veers away from their initial plan of taking the company public. The decision comes amidst concerns regarding the current market conditions for public offerings and a desire to capitalize on their investment swiftly.
Here are some key points about the impending sale of Kantar:
- Bain Capital acquired a majority stake in Kantar in 2019, valuing the company at around $4 billion, with WPP retaining a minority share.
- Market conditions have made initial public offerings a challenging venture, prompting Bain and WPP to seek alternative routes to monetize their investment.
- Recently, Kantar sold off its media division to private equity group HIG Capital, garnering a valuation of approximately $1 billion for the business.
- Rather than pursuing an IPO, Bain and WPP are now focused on selling off Kantar’s larger divisions to maximize their returns.
Among Kantar’s standout units is Numerator, a rapidly expanding consumer and market intelligence company based in Chicago. Known for providing invaluable consumer data in North America, Numerator could be on the market for a potential sale this year. Kantar merged Numerator with its Worldpanel division, creating a global consumer data powerhouse that boasts first-party consumer data from nearly 5 billion individuals worldwide.
In addition to Numerator, Kantar manages panels of over 170 million individuals who provide insights on marketing trends and campaign effectiveness. The company reported $2.5 billion in adjusted gross revenues in the first nine months of 2024, signaling steady growth in comparison to the previous year.
As the future of Kantar hangs in the balance, the decisions made by Bain Capital and WPP will undoubtedly leave a lasting impact on the market research landscape. Stay tuned for further developments as this story unfolds, offering valuable insights into the world of business and finance.
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