NEW YORK (CNNfn) - The Interpublic Group of Cos. Inc. agreed to acquire market-research firm NFO Worldwide Inc. in a stock transaction valued at about $580 million.|
New York-based Interpublic, the worldís No.2 advertising group behind Omnicom Group †(OMC), said Monday it would pay $26 of its stock for each NFO share, based on the market price of Interpublic stock at the time the deal is closed subject to a collar, which, if exceeded, could lead each party to renegotiate certain terms of the pact.
"This acquisition of NFO further advances our corporate strategy of providing an array of the world's best and most thoroughly global companies in the marketing communications and marketing information arenas," said Philip H. Geier, Jr., Interpublic Chairman and Chief Executive officer, said in a statement.
†NFO †(NFO) is the largest custom market research firm in North America and the third largest in the world. The Greenwich, Conn.-based company has about 4,000 employees in 35 countries. With annual revenue in excess of $425 million, NFO is also the world's largest provider of Internet-based custom marketing research.
Interpublic, with 35,000 employees worldwide, operates a network of companies including advertising and public relations agencies, including McCann-Erickson WorldGroup and Lowe Lintas &
The deal is expected to close at the end of the first quarter of 2000.
†---from staff and wire reports