Brookfield Business Partners (NYSE: BBU, BBUC; TSX: BBU.UN, BBUC),
together with institutional partners (collectively “Brookfield”)
today announced it has entered into a partnership to acquire
Nielsen Holdings plc (NYSE: NLSN) (“Nielsen” or the “Company”) in
an all-cash transaction valued at approximately $16 billion.
Nielsen is a global leader in third-party
audience measurement, data and analytics across all forms of media
and content, generating $3.5 billion in annual global revenue. The
Company is an essential service provider to the video and audio
advertising industry providing critical measurement data for
advertising buyers and sellers.
“We are pleased to invest in Nielsen, a
market-leading company that is deeply embedded in the media
ecosystem as a trusted service provider to its customers,"
commented Dave Gregory, Managing Partner, Brookfield Business
Partners. “Nielsen is well positioned to lead the industry into the
next generation of audience measurement across all channels and
platforms."
Investment Highlights
- Market-leading
position. Nielsen is a global leader in audience
measurement and a trusted partner to its customers across the
entire media ecosystem. The Company has more than 50 years of
statistically significant historical data and its scale is
unmatched by competitors.
- Essential service
provider. Nielsen’s measurement data underpins the $100+
billion video and audio advertising markets and its measurement
data is the established industry standard by which video and audio
advertising spend transacts.
- Resilient performance and
outlook. The Company’s history of consistent growth is
driven by its valued offering and longstanding customer
relationships. Nielsen’s scale and existing market position should
support the Company’s ability to consistently grow its measurement
business.
- Value creation
potential. Nielsen is well positioned to be the leader in
cross-media measurement as audience viewership behavior continues
to evolve. The development and adoption of Nielsen ONE, Nielsen’s
cross-media measurement service, will deliver a unified measure of
consumer viewership across all media and support the Company’s
growth strategy.
Funding
Brookfield will invest approximately $2.65
billion by way of preferred equity, convertible into 45% of
Nielsen’s common equity. Brookfield will be actively involved in
the Company’s governance. Brookfield Business Partners expects to
invest approximately $600 million, and the balance of Brookfield’s
investment will be funded from institutional partners.
Prior to or following closing, a portion of
Brookfield Business Partners' commitment may be syndicated to other
institutional investors.
Transaction Process
The transaction is subject to customary closing
conditions and is expected to close in the second half of 2022.
Brookfield Business Partners is
a global business services and industrials company focused on
owning and operating high-quality businesses that provide essential
products and services and benefit from a strong competitive
position. Investors have flexibility to invest in our company
either through Brookfield Business Partners L.P. (NYSE: BBU; TSX:
BBU.UN), a limited partnership, or Brookfield Business Corporation
(NYSE, TSX: BBUC), a corporation. For more information, please
visit https://bbu.brookfield.com.
Brookfield Business Partners is the flagship
listed vehicle of Brookfield Asset Management’s Private Equity
Group. Brookfield Asset Management is a leading global alternative
asset manager with approximately $690 billion of assets under
management. More information is available at
www.brookfield.com.
For more information, please contact:
Investor
RelationsAlan FlemingTel: +1 (416) 645 2736Email:
alan.fleming@brookfield.com |
MediaSebastien
BouchardTel: +1 (416) 943-7937Email:
sebastien.bouchard@brookfield.com |
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS AND
INFORMATION
Note: This news release contains
“forward-looking information” within the meaning of Canadian
provincial securities laws and “forward-looking statements” within
the meaning of applicable Canadian and U.S. securities laws.
Forward-looking statements include statements that are predictive
in nature, depend upon or refer to future events or conditions,
include statements regarding the operations, business, financial
condition, expected financial results, performance, prospects,
opportunities, priorities, targets, goals, ongoing objectives,
strategies and outlook of Brookfield Business Partners, as well as
the outlook for North American and international economies for the
current fiscal year and subsequent periods, and include words such
as “expects,” “anticipates,” “plans,” “believes,” “estimates,”
“seeks,” “intends,” “targets,” “projects,” “forecasts” or negative
versions thereof and other similar expressions, or future or
conditional verbs such as “may,” “will,” “should,” “would” and
“could.”
Although we believe that our anticipated future
results, performance or achievements expressed or implied by the
forward-looking statements and information are based upon
reasonable assumptions and expectations, the reader should not
place undue reliance on forward-looking statements and information
because they involve known and unknown risks, uncertainties and
other factors, many of which are beyond our control, which may
cause the actual results, performance or achievements of Brookfield
Business Partners to differ materially from anticipated future
results, performance or achievement expressed or implied by such
forward-looking statements and information.
Factors that could cause actual results to
differ materially from those contemplated or implied by
forward-looking statements include, but are not limited to: the
impact or unanticipated impact of general economic, political and
market factors in the countries in which we do business; including
as a result of the ongoing novel coronavirus (SARS-CoV-2) pandemic,
including any SARS-CoV-2 variants (collectively, “COVID-19”); the
behavior of financial markets, including fluctuations in interest
and foreign exchange rates; global equity and capital markets and
the availability of equity and debt financing and refinancing
within these markets; strategic actions including dispositions; the
ability to complete and effectively integrate acquisitions into
existing operations and the ability to attain expected benefits;
changes in accounting policies and methods used to report financial
condition (including uncertainties associated with critical
accounting assumptions and estimates); the ability to appropriately
manage human capital; the effect of applying future accounting
changes; business competition; operational and reputational risks;
technological change; changes in government regulation and
legislation within the countries in which we operate; governmental
investigations; litigation; changes in tax laws; ability to collect
amounts owed; catastrophic events, such as earthquakes; hurricanes
and pandemics/epidemics; the possible impact of international
conflicts and other developments including terrorist acts and cyber
terrorism; and other risks and factors detailed from time to time
in our documents filed with the securities regulators in Canada and
the United States.
In addition, our future results may be impacted
by various government mandated economic restrictions resulting from
the ongoing COVID-19 pandemic and the related global reduction in
commerce and travel and substantial volatility in stock markets
worldwide, which may negatively impact our revenues, affect our
ability to identify and complete future transactions, impact our
liquidity position and result in a decrease of cash flows and
impairment losses and/or revaluations on our investments and
assets, and therefore we may be unable to achieve our expected
returns. See “Risks Associated with the COVID-19 Pandemic” in the
“Risks Factors” section included in our Management’s Discussion and
Analysis of Financial Condition and Results of Operations in our
Form 20-F for the year ended December 31, 2020.
We caution that the foregoing list of important
factors that may affect future results is not exhaustive. When
relying on our forward-looking statements, investors and others
should carefully consider the foregoing factors and other
uncertainties and potential events. Except as required by law,
Brookfield Business Partners undertakes no obligation to publicly
update or revise any forward-looking statements or information,
whether written or oral, that may be as a result of new
information, future events or otherwise.
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