M:Metrics (www.mmetrics.com), the recognized leader in mobile measurement, has been sold to comScore (Nasdaq: SCOR) (www.comscore.com), a leader in measuring the digital world. The acquisition makes comScore the immediate leader in measuring the emerging and strategically important mobile Internet market and adds to comScore’s leading position in measuring PC-based Internet usage.
The transaction involves a cash payment of $44.3 million and the issuance of approximately 50,000 options to purchase shares of comScore common stock to certain M:Metrics unvested option holders. JEGI CLARITY (www.jegiclarity.com), the leading provider of independent investment banking services for the media and information industries, represented M:Metrics in this transaction and acted as its exclusive financial advisor.
M:Metrics offers three primary measurement products: MobiLens, a syndicated monthly online survey that captures overall mobile phone usage; MeterDirect, the industry’s first on-device meter that passively measures the mobile Internet behavior and media consumption of more than 4,000 existing Smartphone panelists; and M:Ad, the first competitive tracking service for mobile advertising that continuously monitors clickable display advertising.
“With the substantial growth of 3G devices and Internet friendly handsets, we believe we are now at an inflection point in Internet usage on mobile devices,” said Dr. Magid Abraham, comScore’s president and chief executive officer. “Our acquisition of M:Metrics makes comScore an immediate market leader in this space and positions comScore to deliver significant shareholder value as wireless carriers, telecom equipment providers, media companies, advertising agencies, online publishers, and marketers extend their reach into the mobile Internet world.”
In connection with the acquisition, the co-founders of M:Metrics, Will Hodgman, president and chief executive officer, and Seamus McAteer, chief product architect, will join comScore’s management team.
“comScore is the ideal partner for M:Metrics and clearly the right company to leverage and build upon M:Metrics’ leadership in mobile measurement. The combined company will provide our customers with a compelling portfolio of cross media online measurement and analytics,” said Mr. Hodgman. “We are excited about joining comScore and leveraging its vast capabilities, blue chip customer base, and innovative technologies. By combining forces, I am confident we will be the pre-eminent Internet and mobile marketing intelligence provider in the world.”
comScore is expecting the M:Metrics business to be profitable on an Adjusted EBITDA basis by the end of the fourth quarter of 2008, and to be a significant positive contributor to Adjusted EBITDA in 2009. M:Metrics’ revenues are currently forecast to be approximately $11 million to $12 million for the full year 2008, and will contribute $6.5 to $7 million to comScore’s reported revenues for 2008 post-closing.
The JEGI CLARITY team helped deliver a great outcome for M:Metrics. In a very difficult market and despite unexpected challenges, they stayed focused and tenacious to get the job done with a real win for investors.
Chip Austin, Managing Principal, i-Hatch Ventures