MUMBAI: Nielsen Holdings, a leading global provider of information and insights into what consumers watch and buy, has said it has signed a definitive agreement to acquire Arbitron, an international media and marketing research firm.

Nielsen has agreed to acquire all of the outstanding common stock of Arbitron for $48 per share in cash, representing a premium of approximately 26 per cent to Arbitron’s closing price on 17 December.

Nielsen has a financing commitment for the total transaction amount. The transaction has been approved by the boards of both
companies and is subject to customary closing conditions, including regulatory review.

With Arbitron assets, Nielsen intends to further expand its Watch segment’s audience measurement across screens and forms of listening.

“These integrated, innovative capabilities will enable broader measurement of consumer media behavior in more markets around the world. We will also bring local clients greater visibility to empower more precise advertising placement and campaign effectiveness," said Nielsen President of Global Media Products and Advertiser Solutions Steve Hasker.

“Radio reaches more than 92 per cent of all American teens and adults because they love to listen to music, talk, news and information while at home, at work and in their cars,” said Arbitron President and CEO William T. Kerr.

“By combining Nielsen’s global capabilities and scale with Arbitron’s unique radio measurement and listening information, advertisers and media clients will have better insights into consumer behavior and the return on marketing investments.”

Together, Nielsen and Arbitron generated total revenues of $6 billion and combined pro forma adjusted Ebitda of $1.7 billion based on the 12 months ended 30 September. Cost synergies associated with the acquisition are expected to be at least $20 million and will be largely driven by the integration of technology platforms and data acquisition efforts.