Nielsen (NYSE:NLSN) is being acquired for $16 billion, including debt, about a week after the TV ratings and marketing data company rejected a $9-billion offer.
A group of private equity investors led by Brookfield Business Partners will invest approximately $2.65 billion via preferred equity, convertible into 45% of Nielsen’s common equity. The equity version of the deal is worth just over $10 billion, with the remainder in debt held by Nielsen.
The company said Tuesday that it anticipates investing approximately $600 million, with the remaining balance funded from institutional partners. It added that part of its commitment may be syndicated to other institutional investors.
The Nielsen Board of Directors voted unanimously to support the acquisition proposal, which represents a 10% premium over the Consortium’s previous proposal and a 60% premium over Nielsen’s unaffected stock price as of March 11, the last trading day before market speculation regarding a potential transaction. The Board reached this determination following a comprehensive review of the proposal, with the assistance of its independent financial and legal advisors.
Nielsen Holdings Plc, based in New York City, had turned down the group’s previous offer, saying it had significantly undervalued the business.
Nielsen is well known for measuring television viewership, statistics that then help govern billions of dollars in advertising spending. It has $3.5 billion in annual global revenue.
The deal is expected to close in the second half of the year.
Shares of Nielsen soared $4.92, or 22.1% after the market open, to $27.13.