Rentrak Completes Acquisition Of Kantar's U.S.-Based TV Measurement Assets

(RTTNews) - Rentrak Corp. (RENT) said Monday that it has completed the acquisition of the U.S. television measurement business of WPP's Kantar business unit for about 1.53 million restricted shares of Rentrak common stock.

Based on the closing price of Rentrak's common stock on November 28, the shares have an approximate value of $128 million.

The deal includes Kantar Media's customer contracts and customer relationships involved in U.S. television measurement, creating the benefits of clarity and simplicity for clients in the U.S. TV ratings marketplace with a single massive and passive TV measurement service.

Rentrak expects the acquisition to produce multiple long-term revenue streams directly, as well as from anticipated future joint marketing agreements with Kantar and its expanded relationship with, and endorsement from, GroupM. Rentrak expects to add about $7 to $9 million in revenue in fiscal 2016 as a result of the deal, which is expected to be slightly accretive in fiscal 2016.

In connection with the acquisition, WPP also purchased additional restricted shares of Rentrak common stock from the company for $56 million in cash, giving WPP an ownership stake of 16.7% of Rentrak's stock as of the closing date.