Phoenix exits Precise Media in trade sale

Harriet Bailey
10 June 2014

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UK mid-market private equity firm Phoenix Equity Partners has divested its majority stake in London-based Precise Media to Kantar Media, a media research and analytics business.

Under Phoenix's ownership, Precise received investment to boost headcount and product development, including an evaluation service that allows customers to measure the effectiveness of their media programmes. Funding also went towards a new monitoring service aimed at SMEs, as well as broadcast and social media monitoring services.

Kantar is owned by global marketing services firm WPP, which extends its capabilities in data investment management via the acquisition. WPP has 34,000 employees working in research and consultancy, with 15,000 people employed in the UK.

Kantar, which employs 27,000 people across 100 countries, delivers media reputation tracking and impact analysis for PR campaigns.

Previous funding
Precise Media has been owned by private equity since 2005, according to unquote" data. In April that year, 3i backed the £17m buy-in management buyout of the company (then Knight Banner Information), taking a 57% stake for £7.5m. The company was subsequently renamed Precise Media.

Senior debt and working capital facilities were provided by RBS through its London-based corporate & structured finance team.

In December 2006, 3i sold its stake in the firm to Phoenix for £42m. Phoenix approached 3i directly for the company and backed a management buyout led by Peter Low, Keir Fawcus and Tony Prime. 3i generated an IRR of 101% and a 3.2x money multiple.

During its holding period, Precise Media integrated five businesses and made several management appointments. According to unquote" data, RBS provided debt facilities for the transaction, while the Phoenix Equity Partners 2006 fund, a £375m vehicle with 24 investors, financed the deal.

In 2007, Precise Media acquired business planning company AMI, followed by media monitoring specialist Media Gen in June 2010 as part of Phoenix's strategy to grow the company acquisitively.

Company
Founded in 1996 and headquartered in London with offices in New York, Precise Media provides monitoring and evaluation services from 10,000 UK and international print and online media sources.

Precise Media employs 430 people servicing 2,500 clients including multinational corporations, PR agencies, public sector bodies and SME clients. It generated revenues of £28.9m for the year ending 30 September 2013, with gross assets of £34.4m.

People
Peter Low is CEO of Precise Media. Kevin Peck is a partner at Phoenix.