NETRATINGS TO ACQUIRE REDSHERIFF
Expands Nielsen//NetRatings` Presence in Site-Centric Internet Audience Measurement Market
New York, Dec. 22, 2003 - NetRatings, Inc. (NASDAQ: NTRT), the global standard
for Internet audience measurement and analysis, today announced that it
has acquired a majority interest in RedSheriff, a global leader in site-centric-based
Internet audience measurement. The transaction extends Nielsen//NetRatings`
leadership in the media and market research sector and positions the company
to satisfy industry demand for integrated panel-centric and site-centric
services for Internet audience measurement solutions.
"We are delighted to be adding RedSheriff`s market-leading product suite
to the Nielsen//NetRatings product portfolio," said William Pulver, president
and CEO, NetRatings. "Our clients have been calling for increased clarity
around the metrics provided by panel-centric and site-centric research
to support the growth of online advertising. Nielsen//NetRatings, with
a track record of providing high quality and innovative panel-based solutions,
and RedSheriff, with a heritage of delivering advanced insights based on
patented page-tagging technology, are uniquely positioned to support the
needs of the industry. We expect this transaction to be accretive in 2004
and look forward to welcoming RedSheriff employees and clients into our
organization."
Under the terms of the agreement signed by NetRatings and RedSheriff`s
majority shareholder, Morgan Grenfell Private Equity Limited, as manager
of various funds of Deutsche Equity Partners IV (MGPE), NetRatings has
acquired MGPE`s 58 percent stake in RedSheriff for approximately $12 million
in cash. RedSheriff`s shareholders agreement requires NetRatings to offer
to purchase all remaining RedSheriff shares through a process expected
to extend through the end of January 2004. NetRatings anticipates purchasing
additional shares and is prepared to acquire 100 percent of the company.
With headquarters in New York and Sydney, RedSheriff counts more than 500
companies as clients for its products and services, which include:
- Customer Intelligence: a browser-based audience measurement tool that
provides publishers of all sizes with robust data pertaining to their site
or network of sites
- Market Intelligence: census-based rankings that provide insight into
a company`s positioning within the industry and relative to its competitors
- Research and Consulting: customized research, analysis and consultation
to provide feedback on a company`s Web site
RedSheriff has 63 employees and 12-month trailing revenues of approximately
$7.5 million through Sept. 30, 2003.
RedSheriff`s CEO Richard Webb commented, "RedSheriff is excited to be joining
Nielsen//NetRatings with whom we share a common entrepreneurial spirit
and a history of innovation in Internet audience measurement. Nielsen//NetRatings`
comprehensive product set, innovative methodologies and strong financial
position provide RedSheriff with an outstanding platform for continued
growth. I am confident that our clients and employees will benefit from
this transaction."
This addition to the Nielsen//NetRatings product offering demonstrates
NetRatings` commitment to utilizing high quality technologies and methodologies
to provide the most accurate and reliable Internet audience measures to
clients and the marketplace. The advantages of site-centric based methodology
include:
- Census-level page-view and visitor counts based on measurement of all
access locations and devices, including home, work, schools, cyber cafes,
and wireless, shared and PDA devices
- A rich reservoir of Web analytics data
- Applications relevant to all Web site operators, including those with
smaller audiences
- Cost-effective entry into new countries and smaller markets
- Real-time data delivery options
Graham Thomas, director of Morgan Grenfell Private Equity Limited, added,
"Richard Webb and the entire team have done an outstanding job of building
RedSheriff from a fledging start-up to a global company with a track record
of impressive growth. We are pleased with this transaction and optimistic
that, as part of the Nielsen//NetRatings organization, RedSheriff clients
and employees are positioned for a strong future."
About NetRatings
NetRatings, Inc. (Nasdaq: NTRT) provides the Nielsen//NetRatings services,
the global standard for Internet audience measurement and analysis. Nielsen//NetRatings
enables its customers to make informed business-critical decisions regarding
their Internet strategies with its technology driven products and services,
which include the Nielsen//NetRatings NetView Internet audience measurement
service, AdRelevance and LemonAd online advertising intelligence, @Plan
Web user lifestyle, demographic and product brand preferences data, WebRF,
an Internet reach and frequency planning tool, and custom data, research
and analysis. For more information, please visit www.nielsen-netratings.com.
Safe Harbor Statement
This press release contains statements that may constitute forward-looking
statements pursuant to the safe harbor provisions of the Private Litigation
Reform Act of 1995. These forward-looking statements are based on current
expectations and assumptions and involve a number of uncertainties and
risks that could cause actual results to differ materially from those currently
expressed in any such forward-looking statements. Information about potential
factors that may affect NetRatings` business and financial results is included
in its annual report on Form 10-K for the fiscal year ended December 31,
2002 and its quarterly reports on Form 10-Q, including, without limitation,
under the captions "Management`s Discussion and Analysis of Financial Condition
and Results of Operations" and "Risk Factors That May Affect Our Performance."
Each of these documents is on file with the SEC and is available free of
charge. Readers of this press release are referred to such filings. The
forward-looking statements herein speak only as of the date of this press
release. NetRatings does not undertake to update any forward-looking statement
that may be made from time to time by it or on behalf of NetRatings.
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