MRSS completes acquisition of market research firm, Market Probe
Majestic Research Services and Solutions Ltd (MRSS) has acquired 100 per cent stake in Singapore-based market research company Market Probe Asia Pacific Pte Ltd (MPA) from its US parent - Market Probe Inc. for SGD 0.65 million (Rs 3.1 crore) in an all cash deal from the internal accruals of the company, that is, without any dilution of shareholders stake. Market Probe Asia (MPA) will operate as a wholly owned subsidiary of MRSS.
MPA generated revenue of SGD 4.87 million (Rs 22.8 crore) in calendar year 2016. The total consideration payable for the acquisition of SGD 0.65 million (Rs 3.1 crore) is less than one-sixth of their 2016 sales and ~ 1/3 of MPA’s networth as on December 2016. Cash balance of MPA post acquisition will be SGD 0.55 million (Rs 2.61 crore). Hence, effective net cash outflow for the acquisition would only be around SGD 0.10 million (Rs 0.47 crore).
The rationale behind the strategic acquisition for MRSS is to synergise with MPA’s captive client base, specialised capability and increase its geographical reach. The MPA acquisition acts as a gateway to Asia specifically in high growth markets like Indonesia, Thailand and Vietnam. With this acquisition, MRSS plans to expand its customer experience management practice and thereby look to engage with more airports around the world (apart from Changi and Delhi airports). MPA also gives an opportunity to bid for government contracts in Singapore worth SGD 10 million (Rs 47.44 crore) every financial year.
MRSS plans to leverage its existing innovative technology backed market research solutions to enhance MPA’s product offering with its existing client base as well as target new clients and markets.
Commenting on the development, Raj Sharma, Chairman MRSS, said, “We are glad to have closed the acquisition. We plan to deploy judicial use of technology, management expertise, cost re-engineering and reorient the customer focus, thereby aiming to increase the operating margins and bring them in line with those of Indian parent entity.”
Established in 1987, Market Probe Inc. is a full-service global market research and consulting firm specialising in stakeholder measurement engagements as well as a wide array of custom research assignments.
MRSS India is India’s first and only listed market research company with a wide range of offerings such as Eye Tracking, Mobile Analytics, Video Analysis, Digital Tracking, Automated Audience Measurement, and more.