Wednesday, September 10, 2008

Microsoft picks ZM Capital-backed firm as buyer of Greenfield Online’s survey biz

By Mass High Tech Staff

Microsoft Corp. reports that it reached an agreement to sell the Internet survey business of Greenfield Online Inc. to ZM Surveys LLC, just two weeks after Wilton, Conn.-based Greenfield Online (Nasdaq: SRVY) reached an agreement to be acquired by Microsoft (Nasdaq: MSFT) for $486 million.

At the time, Microsoft agreed to sell the assets of Greenfield Online’s Internet survey solutions business to an unnamed buyer. Both deals are scheduled to close during the fourth quarter, officials said. Microsoft didn’t disclose the financial terms of the ZM Surveys deal. ZM Surveys is an affiliate of ZM Capital LP, a New York-based buyout firm.

Greenfield Online, founded in 1994, is an interactive media and services company that collects consumer attitudes about products and services. It employs 778 workers.

The company completed an initial public offering in 2004, pulling in $58 million through the transaction. It then 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.

In June, Greenfield Online agreed to be acquired by New York-based private investment firm Quadrangle Group LLC for $426 million in cash. But Greenfield subsequently terminated the Quadrangle Group agreement, requiring Greenfield Online to pay Quadrangle a $5 million fee.

In 2007, Greenfield Online posted $13 million in net income on $129 million in revenue.