From Medicine to Megatrends

MARKET INTELLIGENCE

VNU, the Dutch market intelligence firm that owns media research giant ACNielson, has agreed to acquire IMS Health, the leading market intelligence company in health care and pharmaceuticals, in a stock and cash transaction valued at $7 billion. The merger would create a diversified consumer marketing company with 2004 revenues of about $5.6 billion. VNUs other major focus in consulting and market intelligence is consumer packaged goods.

Together, we will be able to measure our clients performance in three key sectors of the global economy and offer superior insights into the consumer behavior that drives these markets, VNU Chief Executive Officer Rob van den Bergh says. He and David R. Carlucci, CEO of IMS, point to the advantages of scale afforded by combining the companies.

Our companies know each other well and are already working together successfully in various markets around the world, Carlucci says. Our clients will benefit from the integration of our data assets and expertise, while gaining a better understanding of consumer behavior.

Upon completing the acquisition, van den Bergh will head the executive board as CEO, while Carlucci will take the post of deputy CEO and chief operating officer. Rob Ruijter, VNUs current chief financial officer will retain the top financial post in the combined company. David M. Thomas, chairman of IMS, will become vice chairman of a 10-member supervisory board, which includes four members from IMS.

Covering over 70% of all pharmaceutical sales transactions in more than 100 countries, IMS claims to track over 1 million prescription drug brands on a daily basis. The firm also provides consulting and analytical services. In addition to ACNielsen and its other intelligence divisions, VNU publishes trade journals, including Billboard and Hollywood Reporter magazines, and produces trade shows and conferences in the U.S. and Europe.

The company plans to trade on the New York Stock Exchange as well as the Euronext Amsterdam. The transaction will likely be completed in the first quarter of 2006.