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Harris acquires Virginia firm for $41.8 million
Harris acquires Virginia firm for $41.8 million
Listen to this articleHarris Interactive Inc. has acquired privately held WirthlinWorldwide in a $41.8 million stock and cash deal.
The acquisition will add $50 million in annual revenues and 300 clients to Harris Interactive. The Brighton market research firm has issued 3.5 million shares at $6.07 a share and paid $20.4 million in cash, to acquire WirthlinWorldwide.
“This combination expands our portfolio of products and services and injects a significant amount of intellectual capital into our organization,†said Robert Knapp, CEO of Harris Interactive. “We are well on our way to achieving our goal of becoming a $500 million strategic market research firm in the next five years.â€
Virginia-based WirthlinWorldwide also will expand Harris Interactive’s global reach, through its offices in Shanghai and Hong Kong. The transaction also increases Harris Interactive’s participation in sectors such as its brand and strategic consulting business, government and policy practice and consumer packaged goods.
The combined firm will have more than 1,100 employees—the local company gains some 55 management and research staffers, officials said. Prior to the deal, Harris Interactive employed 1,095 people worldwide, with 325 here.
Richard Wirthlin, founder of WirthlinWorldwide, will become a director at Harris Interactive. He is expected to continue to develop strategic direction for clients and internal operating groups. He is known widely for his role as late President Ronald Reagan’s chief strategist and pollster.
“For over 40 years, I have been passionate about helping our clients build measurable value,†Wirthlin said. “With this merger we can now arm clients with a broader and more powerful suite of world class research tools.â€
Harris Interactive (Nasdaq: HPOL) raised its fiscal first-quarter guidance to $40 million to $42 million, up from previous estimates of $37 million to $39 million. Fiscal 2005 revenues are expected to fall in the $210 million to $215 million range, with roughly $40 million from WirthlineWorldwide.
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