TNS joins the Group, at last
TNS is a company whose people, brands and work we have long admired competitively and it will add significant value to the Group. TNS is a market leader in Continental Europe with strong positions in the UK, Asia and the Middle East and is a major supplier of consumer panel, media intelligence and TV and radio audience measurement data. It is competitively strong in key industries, including automotive, technology, healthcare and retail and packaged goods.
The combination of TNS and the other companies within Kantar – the Group’s Information, Insight & Consultancy business – has created the second-largest global insight, information and consultancy group and the fourth-largest information services company in the world, after Thomson Reuters, Nielsen and Bloomberg. This combination now provides leading positions in shopper research and marketing, Media (outside of the US), Healthcare, Communications and Innovation. In a recently announced reorganisation, TNS Custom Research has now been merged with Research International and four specialist research units have been formed – Kantar Media, Kantar Healthcare, Kantar Retail and Kantar Worldpanel.
TNS performed well in line with its revenue and profit forecast at the time of its acquisition. Our estimates of synergy benefits are being met and in fact being exceeded. The cost benefits identified will also be realised sooner than originally anticipated and the cost ratios will be in line with our original projections. Integration has gone well so far and the new organisational structure for the combined Kantar and TNS has been implemented. The cost of the acquisition of TNS including debt was £1.6 billion and was funded principally by debt. Our goal remains that the return on capital from TNS will exceed the cost of capital within three years from the date of acquisition.