Digital media measurement firm comScore, Inc. will acquire the ARSgroup, a communications research agency specializing in measuring advertising persuasion for TV and multi-media campaigns.
ComScore did not reveal the acquisition price, although it did indicate it was an all-cash transaction.
ARSgroup helps advertisers measure, optimize and predict the effectiveness of their advertising messages through its Persuasion methodology. The company’s product suite evaluates and quantifies the impact of campaigns comprised of any combination of touch points, including television, print, radio, outdoor and digital.
Following the transaction’s close Jeff Cox, CEO of ARSgroup, will be named an executive VP of comScore. ComScore anticipates closing the transaction in March 2010.
"As the advertising market continues to become more fragmented as it migrates toward various emerging digital content channels, understanding how to measure the effectiveness of one's advertising messages has never been more important,” said Magid Abraham, comScore’s president and CEO, in a statement.
Separately, the company said it generated fourth-quarter revenue of $33.8 million, up 7% over the $31.6 million it pulled in during fourth quarter of 2008. But its net income fell to $1.6 million during the most recent quarter down from $20.4 million.
The fourth-quarter 2008 figure was almost entirely made up of a non-recurring tax benefit of $20.4 million.
“Improving customer budgets and the introduction of Media Metrix 360 helped drive a significant pickup in sales across the board,” Abraham said. “During the quarter, we added 57 net customers, the highest number of net adds we have seen since the second quarter of 2008, and a significant increase over the average quarterly net adds of 20 customers over the prior 4 quarters.”
For the year, the company recorded $127.7 million in sales, up from $117.4 million a year ago. But the company’s net income slipped from $25.2 million to $4 million, although – again – fiscal 2008 included the $20.4 million tax benefit.
