WPP's Kantar to buy a stake in comScore

WPP’s research arm Kantar has entered into a strategic global alliance with comScore, the US-based internet audience measurement company.In a press statement, WPP said it will offer to purchase up to 15.45% of comScore through a tender offer with an offering price of US$46.13 per share. Meanwhile comScore will issue new shares representing 4.45% of comScore in consideration for certain Kantar European internet audience measurement assets, plus potentially additional new shares, depending on the result of the tender offer.Through a combination of new shares primary issuance by comScore and the tender offer, WPP will own a total stake in comScore of between 15 and 19.9%. The transaction is expected to be completed later in the year.The alliance, which covers territories outside the US, is designed to deliver cross-media audience and campaign measurement capabilities by bringing together products, technology, data assets, research panels and relationships from both companies. These agreements continue WPP's strategy of strengthening its capabilities in digital and data investment management businesses.WPP’s digital revenues (including associates) were over US$6 billion in 2013, amounting to approximately 35% of the Group’s total revenues of US$17.3 billion. WPP currently has set a target of 40-45% of revenue to be derived from digital in the next five years.The partnership will also strengthen the capabilities of Kantar, the data investment management division of WPP. Its 30,000 employees work across 100 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at every point of the consumer cycle.Worldwide, WPP's data investment management companies (including associates) collectively generate revenues of about US$5 billion and employ over 34,000 people.