VNU to buy IMS Health Incorporation

VNU has announced plans to acquire healthcare data provider IMS Health Inc. for USD 6.9 billion. This would help the Dutch media group to get into the vastly improving market of healthcare to meet the requirements of their core research unit. This would also enable the VNU to double their size and compile global information about prescription drug sales. IMS Chief Executive David Carlucci said in a statement about the merger: “Our companies know each other well and are already working together successfully in various markets around the world.”

The combined entity would have sales figures of 4.7 billion euros for the year 2004 and earnings of around 1.1 billion euros before interest, tax, depreciation and amortization. This acquisition also helps the shareholders of the company to finally have something to look forward to after VNU raised a lot of revenues from last year’s sale of its phone directories business. Markets are however not impressed at this high price as the shares of the company tumbled at the stock exchange by around 4%.

After the merger is complete, the current shareholders of VNU would own around 65% of the combined company compared to 35% for the IMS Health Incorporation shareholders. VNU CEO Rob van den Bergh added: “This merger of two industry leaders gives us the scale and capabilities to meet growing client demand for the must-have market intelligence that drives critical business decisions.”