ComScore To Buy Rentrak In All-stock Deal

(RTTNews) - Web research firm comScore, Inc. (SCOR) said Tuesday that it has agreed to buy film and TV viewership tracker Rentrak Corp. (RENT) in an all-stock deal.

Under the deal, which has been approved by the Boards of Directors of both companies, each share of Rentrak will be converted into the right to receive 1.15 shares of comScore. Rentrak has a market capitalization of $665.90 million. comScore shareholders are expected to own about 66.5% and Rentrak shareholders are expected to own about 33.5% of the combined company.

The deal is expected to be completed by early 2016.

comScore's current Chief Executive Officer, Serge Matta, will lead the combined company as CEO, while Magid Abraham will remain as the Executive Chairman of the Board. Bill Livek, Rentrak's current Vice Chairman & CEO, will serve as the company's Executive Vice Chairman & President.

The combined company's board will consist of twelve directors - eight from comScore and four from Rentrak.

comScore expects the deal to be mildly dilutive to its adjusted earnings per share in 2016, and accretive in 2017.

The merger is expected to create a stronger competitor to Nielsen Holdings Plc (NLSN).

comScore shares are currently gaining 8.51% in after hours trading after closing the day's regular trading session at $41.47, down $1.68 or 3.89%. Rentrak shares are currently gaining 12.91% in extended hours trading after closing the day's regular trading session at $43.39, down 43 cents.