Nielsen To Spin Off Consumer Data Unit In $2.7B Deal

Nielsen Holdings on Sunday announced the sale of its global connect business to private equity firm Advent International in a deal valued at $2.7 billion.

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Nielsen (NLSN) signed a definitive agreement under which affiliates of Advent International in partnership with James “Jim” Peck, former CEO of TransUnion, will acquire its Global Connect unit. Upon deal closure, Nielsen Global Connect will be a private company and will continue to invest in the development and deployment of consumer goods measurement products and solutions. The transaction, which has been unanimously approved by Nielsen’s Board of Directors, is expected to close in the second quarter of 2021.

Nielsen Global Connect provides consumer packaged goods manufacturers and retailers with information and data on marketplaces. The company offers data and builds tools that use predictive models to turn market observations into business decisions.

“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 proceeds from the sale will allow Nielsen to significantly reduce debt, which will provide greater financial flexibility to execute our growth strategy and expand our role in the global media marketplace,” said Nielsen CEO David Kenny. “At the same time, we are excited about this opportunity for Nielsen Global Connect and believe that moving forward as a private company will better position the business to accelerate its transformation and strengthen its market-leading position.”

In addition, the global data analytics company will grant Nielsen Global Connect a license to brand its products and services under the “Nielsen” name and other Nielsen trademarks for 20 years following the closure of the deal. (See NLSN stock analysis on TipRanks)

Shares of Nielsen have been hit hard, plunging 33% so far this year as investors have been left in a situation of uncertainty until now after the market research company announced at the end of last year that it would split into two companies to boost shareholder value.

NLSN scores a Moderate Buy analyst consensus, which breaks down into 4 Buys and 2 Holds. Looking ahead, the $19.67 average analyst price target provides investors with a promising 46% upside potential over the coming 12 months.