Monday, June 16, 2008

Greenfield Online to be bought for $426M

By Mass High Tech Staff

Greenfield Online Inc., a developer of Internet survey products for marketing research and consulting companies, has agreed to be acquired by New York-based private investment firm Quadrangle Group LLC for approximately $426 million in cash.

Under terms of the agreement, Quadrangle will acquire all of the outstanding common stock of Greenfield Online (Nasdaq: SRVY) at a price of $15.50 per share. The price represents a premium of approximately 17 percent over the company’s closing price on June 13, 2008, and a premium of 26 percent over the average closing price during the prior 30 days, according to the company.

The board of directors of Wilton, Conn.-based Greenfield Online has unanimously approved the merger and will recommend to stockholders that they vote in favor of the merger, officials said.

The transaction will be financed by a combination of equity provided by Quadrangle and debt, for which Quadrangle has received financing commitments and cash on hand. The transaction is expected to close in the late third quarter or fourth quarter of 2008.

Founded in 1994, Greenfield Online went public in July of 2004, pulling in $58 million through the transaction. Shortly thereafter, the company went on a buying spree, acquiring OpinionSurveys.com for $3 million in August 2004, Rapidata.net Inc. for $5.5 million in January 2005, Zing Wireless Inc. for $30 million in February 2005 and Ciao AG for $154 million in April of 2005.

The company reported $129 million in revenue in 2007 with $13 million in net income, compared with $100 million in revenue and $8.5 million in income in 2006. As of last December, the company employed 778 people, the bulk in India (252), Germany (187) and the U.S. (129).