Synovate

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Synovate
Subsidiary
Industry Market Research
Headquarters London, UK
Key people
Adrian Chedore, Robert Philpott, CEO
Services Management Consulting, Business Intelligence, Market Analysis
Revenue IncreaseUS$816 million (Synovate Inc., 2009)[1]
Number of employees
5,968 (Synovate Inc., 2009)
Parent Ipsos
Website www.synovate.com

Synovate was a leading global market research company with more than 100 offices in 62 countries.[2] It was acquired by Ipsos in 2011 which combined to be the 3rd largest in the world.[3]

Company History[edit]

Synovate was one of the largest firms specializing in custom research (customized ad-hoc research). They called themselves the most "curious" people in the world. Divisions included Synovate Healthcare, Synovate Business Consulting, Synovate Customer Experience, Synovate Censydiam and Motoresearch.

Synovate was owned by the Aegis Group. It was formed from the acquisition of a number of market research firms such as Blackstone, Censydiam, ISIS Research, Tribi, Symmetrics, Proactive Insights, and AMI.[4]

Synovate was sold by the Aegis to Ipsos on October 11, 2011 for £525 million (€595 million)[5] The combination of the 5th and 6th largest market research companies formed the 3rd largest market research company in the world with offices in 84 countries.[6] Ipsos announced the agreement in July 27, 2011, and financed the acquisition through a new debt financing of €250 million.[7] Synovate was fully integrated into Ipsos early in 2012.[8]

Aftermaths[edit]

Following the sale of Synovate, Aegis became a scaled media and digital communications specialist. It returned £200 million to shareholders via a special dividend, sharply reducing net debt from £393 million (in the end of 1st half of 2011) to £128 million (in November 2011)[9]

Ipsos's post-merger revenue has declined every year since 2011. In 2013, Ipsos sued Aegis for £100 million compensation over deception on the sale of Synovate.[10] The case was dismissed by the commercial court in 2015[11] [12] .[13]

Financial Performance[edit]

Top 10 Global Research Groups 2010[14][edit]

Rank Company Sales in 2010
(million USD)
Growth in %*
1 Nielsen Company, USA 4,958.0 6.5
2 Kantar Group, UK* 3,183.6 3.9
# Ipsos and Synovate Combined 2,397.6 7.4
3 IMS Health Inc., USA 2,211.6 0.3
4 GfK AG, Germany 1,716.2 -7.3
5 Ipsos, France 1,512.8 8.3
6 Synovate, UK 884.8 5.9
7 IRI, USA 727.0 4.6
8 Westat, USA 455.3 -9.4
9 Intage, Japan 416.2 4.7
10 Arbitron, USA 395.4 2.6
  • Growth in local currency, adjusted to take account of acquisitions/disposals

Sales Figures[15][edit]

Year Company Sales
(million USD)
Year over year Change
2009 Synovate (pre-merger) 816.4 -
2010 Synovate (pre-merger) 884.8 +8%
2011 Ipsos (year of merger) 2,495.0 +4%*
2012 Ipsos (post-merger) 2,301.1 -8%
2013 Ipsos (post-merger) 2,274.2 -1%
2014 Ipsos (post-merger) 2,219.9 -2%
  • Calculated by using the combined Ipsos and Synovate pre-merger sales of USD 2,397 million in 2010 (Ipsos's 2010 sales was USD 1,512.8)

References[edit]

  1. ^ About Synovate
  2. ^ Aegis annual report 2010
  3. ^ Ipsos annual report 2010 section 1.2.2, page 16
  4. ^ (Dutch) "Marktonderzoeksbureau Synovate gekocht door Ipsos", customertalk.nl (13 October 2011)
  5. ^ Robert Bain "Ipsos must protect Synovate’s ‘golden nuggets’", research-live.com (2 August 2011)
  6. ^ Ipsos Annual Report 2011 Section 4.4 page 12, the year immediately after the merger
  7. ^ Ipsos press release on July 27, 2011 in Paris
  8. ^ "Ipsos Synovate", ipsos-nederland.nl
  9. ^ Aegis annual report 2011 page 06, 10
  10. ^ "Ipsos wants $100m back from Aegis over Synovate Sale – Bloomberg" research-live.com
  11. ^ "High Court strikes out warranty claim due to shortcomings in claim notice", hsfnotes.com
  12. ^ "High Court analyses material adverse event clause", bonddickinson.com
  13. ^ "IPSOS SA v Dentsu Aegis Network Ltd" IPSOS SA v Dentsu Aegis Network Ltd, England and Wales High Court (Commercial Court) Decisions
  14. ^ GfK Annual report 2011 page 34 "Top 10 of the consumer research sector"
  15. ^ GfK Annual reports 2010-2015 "Top 10 of the consumer research sector"