YouGov Buys in Germany

YouGov has announced its first acquisition in Europe, conditionally agreeing to buy German-based consultancy psychonomics AG for an initial consideration of EUR 20.75m (c.£14m) and a maximum consideration of EUR 23.75m (c.£16m).

psychonomics was incorporated in 1992 and is headquartered in Cologne. One of the country's top ten MR agencies, it focuses on research in the insurance, financial services and healthcare sectors for clients including Allianz, Bayer, L'Oreal and Siemens.

In the year ending December 2006, psychonomics grew profit before tax by 48% to EUR 1.1m (from EUR 0.7m) on revenues up 32% to EUR 13.6m (from EUR 10.2m), and had year-end net assets of EUR 1.3m.

The initial purchase price of EUR 20.75m includes EUR 5m payable in YouGov shares with the balance in cash. A maximum of a further EUR 3m is payable for the years ending December 2007 and 2008 depending on whether financial targets are met. In addition, YouGov shares to the value of EUR 500,000 will be issued to incentivise psychonomics employees.

YouGov CEO Nadhim Zahawi says the buy gives his firm 'a strong foothold in the world's third largest market research market' and a presence in the world's top three global online market research markets - the US, UK and Germany. Zahawi says YouGov sees psychonomics' key sectors as growth markets offering opportunities for its proven online market research techniques, which include BrandIndex and its Omnibus service. 'We see a major opportunity to migrate parts of psychonomics' traditional data collection to our online technology, in addition to transferring its existing online research to the YouGov platform.'

Professor Horst Müller-Peters, CEO of psychonomics, says the two companies are a 'great fit... culturally and organisationally.' He comments: 'We operate in high growth markets, and believe this has been reflected in our strong financial performance over recent years. We're excited about becoming part of a larger market research group with a strong presence in online research and expanding our methods into the YouGov group and promoting YouGov in the German speaking world.'

YouGov was founded in the UK in May 2000 and has a Middle Eastern arm (boosted by acquisition of Siraj last year) and a 32% stake in US firm Polimetrix. For the half year to 31 January 2007, YouGov grew pre-tax profits by 64% to £2.3m on a turnover of £6.1m. The firm said today that all of its businesses continue to perform well, in line with market expectations.

YouGov is on the web at www.yougov.com and psychonomics at www.psychonomics.de.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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