WPP acquires 24/7 Real Media

Televisionpoint.com Correspondent
WPP Group has entered into a definitive agreement to acquire the entire share capital of 24/7 Real Media (TFSM) for $11.75 per share by way of an all cash tender offer. The acquisition values 24/7 Real Media at approximately US$ 649 million, equivalent to approximately 3% of WPP's market capitalisation on 16 May 2007.

The cash consideration payable to TFSM share owners will be US$637 million and will be financed in cash from existing resources and debt facilities. Unvested stock and options are valued at US$49 million and net cash is expected to be approximately US$37 million at closing, to value TFSM at US$649 million.

The acquisition will contribute to all of WPP's three strategic goals; adding to our revenues in Asia, increasing the contribution from marketing services and the share of revenue from quantifiable marketing services.

Commenting on the announcement, Sir Martin Sorrell, CEO, WPP, said: "Our clients and therefore our industry are becoming more media and technology driven. 24/7 Real Media significantly enhances our capabilities, technological resources and talent, as well as adding to our geographic coverage and our measurable skills."

David J. Moore, Chairman and CEO of 24/7 Real Media, said, "This transaction will greatly strengthen our product offerings and will be highly beneficial to clients of both companies. 24/7 Real Media will remain the largest, publisher-focused technology company in the sector, with the second largest installed base of ad serving technology clients globally, and working as part of WPP will be a tremendous benefit to our ad serving and Global Web Alliance clients. We look forward to working with WPP to leverage our award-winning Decide DNA search engine marketing platform and our other technologies to create the leading advertiser technology offering in the marketplace."