IBOPE has been expanding throughout Latin America with its IBOPE Media Information that provides advertising and TV audience measurement services to national and multinational clients in Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela. IBOPE Media Information represents 39% of the group's overall business.
The deal involves an initial cash payment of $10m, followed by a potential $30m, dependent on the performance of IBOPE Media Information until December 31, 2001. WPP is acquiring 35% of the issued share capital of IGM S.A.
IBOPE Media Information reported profit before tax of $4.9m for the year ended December 31, 1996 and had net assets of $2.1m at that date.
Investment in IBOPE bolsters WPP's research activities, grouped under its internal holding company Kantar, which also includes Research International, Millward Brown International and BMRB International.
Copyright September 1997, Crain Communications Inc.