Nielsen Ratings Service to Get Dutch Parent

Nielsen Media Research Inc., the company synonymous with TV ratings in the United States, has agreed to be acquired by Dutch publisher VNU for $2.7 billion.

The planned purchase, announced Monday, would enable VNU to shift the focus of its operations from traditional print media to electronic media and market information.

Most significant, New York-based Nielsen would give VNU entry into its fast-growing Internet ratings business, Net Ratings, which provides information about Internet advertising and customer behavior.

The Dutch company would offer shareholders $37.75 per share, or a total of $2.7 billion, for all of Nielsen’s outstanding stock. The bid is a premium of 15% over its Friday closing share price of $32.81. VNU would also assume $200 million of Nielsen’s debt.

VNU said the addition of Nielsen would significantly increase its earnings over five years. However, it said the deal would probably have a negative effect on earnings in 2000.

Ab Barneveld, an analyst at MeesPierson in Amsterdam, called the buy a “strategically brilliant step” and said it will help VNU become less cyclical, as businesses need marketing information regardless of the broader economy.

Nielsen’s Net Ratings, which executives say may go public next year, is believed to have a great deal of growth potential.

U.S.-traded shares of VNU rose $1.75 to close at $39, and Nielsen shares rocketed $4.50 a share, or 13.7%, to close at $37.31 on the New York Stock Exchange.