In an effort to further reduce debt, Interpublic Group plans to sell its NFO research unit to Taylor Nelson Sofres, a provider of marketing research and information services, in a cash and stock deal worth $435 million.
Under the terms of the deal, Taylor Nelson Sofres will pay Interpublic $400 million in cash, $25 million in stock and another $10 million in cash one year after the close of the transaction, according to news reports.
Interpublic announced in January that it was exploring the sale of NFO Research. The deal is expected to close this summer.
David Bell, the chairman and CEO of Interpublic, said in a statement that the sale is a “capstone” to the progress the company has made in strengthening its balance sheet. The company expects to realize an accounting gain of $100 million in the deal.
Interpublic purchased NFO in April 2000 for about $624 million.
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