Compete sold for $75 million
Website analytics firm Compete has been taken over in a $75 million deal, it has been announced.
The company has been bought out by market research group Taylor Nelson Sofres plc (TNS).
Compete, whose website statistics service rivals that of fellow analysts Alexa.com, will now contribute online market intelligence to TNS’s global market information.
“This acquisition is an important move for TNS that builds on our ability to help clients understand consumer behaviour in the new and highly complex digital world,” said David Lowden, CEO of TNS.
“Compete has built a world-class digital intelligence capability that delivers multiple perspectives on how consumers engage with brands online. Its strength lies in its ability to provide competitive analysis of individuals’ online behaviour, a rapidly growing section of the market that has enormous potential.” he continued.
Although Compete made a $4.5 million operating loss in 2007, its revenue was up over 50 percent on the previous year to $14.9 million. According to the press release, much of the loss was due to investment expenditure.
As the importance of the clickstream data that is collected by Compete grows, TNS anticipate more of their market research and analysis will be based upon it. The company also cite research suggesting the value of the US market in which Compete operates will increase from $325 million today to $500 million by 2009.
The deal will be paid for in deferred cash installments from 2008-2010.
CEO of Compete, Donald McLagan, commented “We welcome this exciting opportunity to join one of the world’s most respected market information and insight groups.”
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