Nielsen is being bought for $16 billion, including debt, just a week after rejecting a $9 billion offer.
Nielsen’s viewing data is crucial in determining where billions of dollars in advertising are spent each year. The corporation generates roughly $3.5 billion in global revenue each year.
With institutional partners, a consortium of private equity investors led by Evergreen Coast Capital Corp., a subsidiary of Elliott Investment Management L.P., and Brookfield Business Partners L.P., will pay $28 for each outstanding Nielsen share.
Brookfield Business Partners will invest $2.65 billion in preferred stock, which will convert to 45 percent of Nielsen’s common stock. The deal’s equity portion is valued at slightly over $10 billion, with the rest held in debt by Nielsen.
Brookfield said on Tuesday that it expects to invest about $600 million, with the rest coming from institutional investors.
The group’s prior offer was rejected by Nielsen Holdings Plc, situated in New York City because it was severely undervalued. Nielsen’s stock rose 22% when it accepted the revised estimate at the opening bell.