Ipsos To Significantly Expand Its Presence In Asia
Paris, September 18, 2002 -- Didier Truchot and Jean-Marc Lech, Ipsos co-chairmen, today announced they have signed agreements by which the Paris-based market research Group will acquire a significant equity in Japanese market research company, Lyncs Incorporated, and Chinese market research company, Feng & Associates Marketing Services (FAMS).
With these two acquisitions Ipsos significantly increases its presence in the Asia-Pacific region. Japan, the largest economy in Asia, represents 8% of the worldwide research expenditures while China, the region's fastest growing economy, offers enormous potential for future growth. This expansion of Ipsos' presence allows the Group to significantly increase the range of Ipsos services to their key clients across the region.
About Lyncs
Ipsos will acquire 60 per cent of Lyncs Incorporated's holdings. Established in 1991 by its President Mr. Nobuyuki Sato, the company generated 5 million euros in revenues during the last fiscal year. With offices in Tokyo and Sapporo, Lyncs serves major international and Japanese clients, and conducts surveys both within Japan and throughout the Asia-Pacific region.
The company has considerable experience in advertising research, which is one of the main Ipsos specializations. Lyncs currently employs 20 full-time staff and more than 850 interviewers. It offers both CATI (telephone) and CAPI (face-to-face) interviewing capabilities, as well as specialized teams for qualitative research with dedicated facilities in Central Tokyo.
This acquisition of Lyncs will enable the Ipsos group - present in the country since the July 1st, 2001 acquisition of the Novaction Group (now Ipsos-Novaction) - to double the size of its operations in Japan.
About FAMS
Ipsos will acquire 40 per cent of Feng & Associates Marketing Services' holdings. Established in 1997 by Mr. Lifeng LIU, President, the company is expected to generate more than 3.5 million euros in revenues, during the current fiscal year.
With offices in Beijing, Shanghai and Guangzhou, FAMS has extensive experience in marketing research, brand strategy and product development. The company, which currently employs 90 full-time staff and more than 600 interviewers, has long-term contracts with more than 30 field suppliers throughout China, including Hong Kong.
With the acquisition of FAMS, the Ipsos group strengthens its position in the Chinese market, where it is already represented by Ipsos-Link, based in Beijing and Shanghai. Ipsos plans to merge the two companies to create Ipsos China in which Ipsos will hold a majority stake and that will be managed by Mr. Lifeng Liu. Ipsos China will make Ipsos the second largest survey-based research Group in China, with revenues of approximately 6 million euros.
About Ipsos
Created in 1975, Ipsos Group ranks 3rd among survey-based global market research companies. Established in more than 30 countries with key companies in each major regional market, Ipsos specializes in advertising, marketing, media, public opinion, and CRM research. In 2001, Ipsos turnover reached 480.2 million euros. For the first half 2002, the Group reported revenues of 244.5 million euros, a 13% increase over the same period last year (organic growth accounting for 7.3%).
Lyncs and FAMS are the fifth and sixth acquisitions made by the Group this year, after ACNielsen Vantis in the U.S., Sample-Inra in Germany, F-Squared in Russia, Ukraine and Poland, and Eureka / Intervjubolaget in Sweden. The Ipsos Group has also acquired the remaining 50% of outstanding shares of the UK-based Focus, a company that specializes in high added-value international marketing research.
These operations are part of the business development plan presented by Ipsos in March 2002 whose main objective is to reaffirm the Group's position as a global leader in survey-based market research. The Group maintains its expectations to reach revenues of 1 billion euro, and an operating margin of 10%, by 2005-2006. These acquisitions are mainly financed by the cash-flow that Ipsos generates in its current perimeter.
Reminder: Ipsos will announce its results for the first semester 2002 on Wednesday 25 September. A conference call will be held on Thursday 26 September at 4.00 PM Paris time.
Ipsos, Profiling People
A worldwide group specializing in research for brands, companies, and institutions. `Consumers, citizens and clients, we can be all of these in turn and at the same time. Ipsos researchers solve these psychological and sociological puzzles, enabling us to identify what unites and what differentiates us as individuals.' At Ipsos, we call this approach `Profiling people'. Since July 1, 1999, Ipsos has been listed on the Nouveau Marchй of the Paris Stock Exchange, and is part of SRD, SBF 250 Index and Next Prime Index.
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