Group Press Releases
Acquisition of Asia Market Intelligence Extends Market Rresearch Presence to the Far East
07 March 2000
Aegis Group plc ("Aegis") - the media communications and market research group - announced today that it has acquired a 100% interest in the Asia Market Intelligence Group ("AMI"). AMI is one of the largest and fastest growing providers of custom market research services across Asia, with offices in Hong Kong, People's Republic of China, Taiwan, Korea, Singapore, Thailand, Malaysia, Indonesia and Philippines.The acquisition of AMI is consistent with Aegis' strategy of expanding its range of services into market research in order to form a broader platform for growth. Aegis' entry into this area was achieved through the acquisition of Market Facts, Inc in June 1999.
The initial cash consideration is £15 million ($24 million) and there is also deferred cash consideration of a maximum of £35 million ($56 million), subject to challenging performance criteria, payable over the next three years. AMI had revenues of approximately £23 million ($37 million) in 1999 and the acquired net assets are approximately £5.9 million ($9.5 million) as at 31 December 1999. It is expected that the acquisition will be earnings enhancing in 2000.
AMI was formed in 1991 and has grown rapidly into the second biggest supplier of customised market research and consultancy in Asia, with an estimated market share for customised research in its region of 11% for 1999. AMI's client list includes many of the leading multi-national and local companies operating in Asia, it has comprehensive facilities for all kinds of research work and it employs more than 600 full-time staff. AMI has achieved sustained and consistent revenue growth, despite the recent economic downturn in the region, and it is now in an excellent position to benefit from economic recovery and the increasing levels of confidence around the region.
Commenting on the acquisition of AMI, Douglas Flynn, Chief Executive of Aegis, said:
"AMI will enable us to establish a strong presence in the strategically important Asian market. AMI is a high-quality organisation and will be an excellent complement to our already strong market research presence in North America. We believe that market research offers Aegis excellent opportunities for growth and this transaction is an important step in developing a global market research network."
Adrian Chedore, Chief Executive Officer of AMI, said:
"We are excited to be joining Aegis. The combination of AMI's presence in Asia and Market Facts' strength in North America will enable both companies to expand the products and services we can offer to clients. We believe that both our clients and our employees will benefit from this business combination."
Thomas Payne, President and Chief Executive officer of Market Facts, said:
"AMI will be a powerful business partner for Market Facts and will help us serve the international research needs of our clients. AMI and Market Facts have been working together over the past several years and our business philosophies and cultures are very compatible. Both companies target large multi-national clients by offering value-added products and services with an emphasis on client service. AMI's reputation as the premier provider of market research services in Asia is well earned and they are highly respected by their clients."
About Aegis Group plc and Market Facts, Inc.
Aegis is listed on the London Stock Exchange with a market capitalisation of approximately £2.4 billion and is the holding company for Carat and Market Facts. In 1999, Carat had net billings of approximately US$10.3 billion and Market Facts had annualised revenue of US$160 million. Market Facts is a leading provider of customised research based in North America.
For further information please contact:
Douglas Flynn, Chief Executive Officer
Colin Day, Group Finance Director
Aegis Group plc
Tel: +44 (0)207 470 5000
Tim Spratt, Director/ Charles Palmer
Financial Dynamics
Tel: +44 (0)207 831 3113
Adrian Chedore, Chief Executive Officer
Asia Market Intelligence Limited
Tel: +852 2881 5388
Tom Payne, President and Chief Executive
Officer
Market Facts, Inc.
Tel: +1 847 590 7000
