YouGov brings forward completion of SMG acquisition after 'strong' performance

Research and data analytics company YouGov announced a variation to the terms of its acquisition of SMG Insight on Wednesday, which was initially announced on 24 May 2018.

The AIM-traded firm said the variation related to a reduction in the timescale of the earn-out period, and its ability to acquire the business in full against those terms.

It said that, since the announcement of the acquisition in 2018, SMG Insight had delivered “strong” results which were ahead of plan.

YouGov said it expected SMG Insight would reach the terms of the earn-out clause ahead of the original indicated timeframe.

To reflect that outperformance, and in order for YouGov to maximise the value it could build upon the strong progress, the company said it would complete the acquisition in full ahead of schedule.

The deferred consideration for SMG Insight amounted to £13.2m, and would be paid over two equal tranches, with the first being made on 15 January, and the second on 31 May 2021, being the anniversary of the previous earn-out period.

It said the total aggregate consideration for the acquisition would amount to £18m.

YouGov descroned SMG Insight as specialising in media measurement and sponsorship evaluation in the sports sector, and added that following the completion of the integration, it had been rebranded as YouGov Sport.

“We are delighted that our proposition in the sports sector is already proving to be a great success,” said chief executive officer Stephan Shakespeare.

“The completion of this deal will allow us to more effectively build on this momentum.

“Today's announcement reflects the strength of the opportunity that YouGov Sport has within the market and our successful strategy of aligning differentiated products and services, including sector-specific offerings, in a single connected data system.”

At 1433 GMT, shares in YouGov were up 0.32% at 633p.