The company announced Sunday that former CEO of TransUnion (NYSE: TRU), Jim Peck, would partner with Advent to accelerate Global Connect's innovation.
By spinning off the Global connect business, Nielsen hopes to achieve enhanced financial flexibility to execute growth strategies.
What Happened: Nielsen CEO David Kenny commented that "the sale of this business to Advent will deliver substantial value sooner than was anticipated through the planned spin-off and creates certainty for all stakeholders."
The deal is expected to close in Q2 2021, and the new company will be renamed NielsenIQ.
The current CEO of Nielsen Global Connect, David Rawlinson, would remain at the new company's helm, and Peck will manage the daily activities, both operational and strategic.
Why Does It Matter: Nielsen will share product & brand licenses and trademarks with Global Connect for 20 years after the deal close. Additionally, the companies will also share reciprocal licenses for certain data over five years.
According to Bloomberg, most of the company's debt is due over the next three years, and the sales proceeds would ease payoffs.
Nielsen expects to reach the year-end 2020 net leverage of 4X.
In November 2019, Nielsen considered a spin-off by way of a public listing after being pressured to offload the Global Connect business by investor Elliot Management Corp — Bloomberg.
Price Action: NLSN shares have advanced 8.3% to $14.65 in the pre-market session on the last check Monday.
Image Courtesy: Wikimedia
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.