YouGov PLC (GB:YOU) secured a €280 million loan facility to finance its takeover of the consumer panel segment of GfK. The acquisition, which is awaiting regulatory approval, was announced in July for €315 million with the aim of expanding its presence in Europe’s consumer goods sector.
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GfK’s consumer panel business, known for its comprehensive consumer insights, aligns seamlessly with YouGov’s data-driven approach. This acquisition will likely enhance the company’s capabilities in providing clients with valuable consumer behavior data, enabling more informed decision-making in a dynamic market environment.
YouGov is a global company focused on online research data and analytics. It operates across the UK, the U.S., Europe, the Middle East, and the Asia Pacific, boasting one of the largest research networks in the world.
Details of Financing
The financing includes a four-year €240 million amortizing term loan and a three-year €40 million revolving credit facility, with an option to extend. The financing is not only directed at funding the GfK acquisition but also earmarked for “general corporate purposes” in line with YouGov’s long-term growth strategy.
The newly secured €280 million loan facility by YouGov marks a strategic financial move, replacing its existing undrawn GBP20 million revolving credit facility and the acquisition bridge debt facility. Both the old facilities have now been canceled, making way for a more robust and substantial financing arrangement.
The company is scheduled to announce its FY2023 earnings next week, on October 10. The company’s interim results reflected its product’s strength despite the slowdown in the economy. The company posted impressive numbers, with a 30% jump in revenues and a 58% increase in operating profit. Among its segments, the demand for data services slowed down, while the consumer research segment reported more revenues and profits.
YouGov Share Price Forecast
Overall, analysts are moderately bullish on the outlook of YOU stock, which has received a Moderate Buy rating from TipRanks’ consensus. It is based on two Buy recommendations. The YouGov share price forecast is 1,397.5p, which reflects a huge upside of 86.3% from the current trading level.
Year-to-date, the stock has been trading down by 26.8%.
