Market research giant Kantar Group has agreed a deal to sell its measurement arm Kantar Media to investment firm H.I.G. Capital, the company announced this weekend, in a deal worth roughly $1 billion. As a standalone measurement company, executives say Kantar Media will be well placed to pursue further growth at a time when demand for cross-media measurement solutions is growing. The deal also has implications for agency group WPP: the holding company owns 40 percent of Kantar Group, meaning it stands to benefit from the $1 billion payout, which will primarily be paid in cash.
Rumours grew towards the end of last year that Kantar Group, which is 60 percent owned by private equity firm Bain Capital alongside WPP’s 40 percent ownership, was looking to sell Kantar Media. The parent group has been streamlining its operations and focussing on its consumer brands businesses. Back in 2022, the business sold its public sector research unit Kantar Public to PE firm Trilantic Europe (for an undisclosed fee).
Fellow measurement business Ipsos had considered buying Kantar Media, but announced in early December last year that it had decided not to do so.
Kantar Group however says that H.I.G. Capital is “known for its hands-on approach and successful track record of accelerating business growth”. And Kantar Media CEO Patrick Béhar says the deal gives his company “the resources and support to further accelerate our growth trajectory and strengthen our position”.
Race for cross-media measurement
Kantar Media operates in over 60 markets, with over 4,500 employees globally. The company plays a key role in media measurement, particularly TV measurement in Europe, providing a lot of the technical infrastructure which powers TV ratings systems.
In the UK for example, it runs the national TV panel which powers ratings for measurement body Barb. It also provides TV data used by Origin, the cross-media measurement project launched by UK advertiser trade group ISBA.
Indeed across Europe, Kantar Media is involved in cross-platform and cross-media measurement solutions. In Italy for example, its ‘Focal Meter’ technology has been used to track video viewing across devices, while it’s also heavily involved in the development of a cross-media measurement solution for NMO, the national Dutch measurement body.
Demand for cross-media measurement solutions and technologies is only going to increase as viewing becomes more fragmented. Kantar Media will hope that investment from its new owner will help it capitalise on this demand.
“With H.I.G.’s expertise in scaling businesses and driving performance, we are more confident than ever in our ability to deliver innovative, data-driven solutions that meet the evolving needs of our growing client base all over the globe,” said CEO Patrick Béhar. “Today is a fantastic moment for Kantar Media, its teams, its partners and its customers as we embark with H.I.G onto the next stage of our transformation.”