Synovate
Company typeSubsidiary
IndustryMarket research
HeadquartersLondon, UK
Key people
Adrian Chedore, Robert Philpott, CEO
ServicesManagement consulting, business intelligence, market analysis
RevenueIncreaseUS$816 million (Synovate Inc., 2009)[1]
Number of employees
5,968 (Synovate Inc., 2009)
ParentIpsos

Synovate was a market research company with more than 100 offices in 62 countries.[2] It was acquired by Ipsos in 2011 which combined to be the third largest in the world.[3]

Company history

Synovate was one of the largest firms specializing in custom research (customized ad hoc research). They called themselves the most "curious" people in the world. Divisions included Synovate Healthcare, Synovate Business Consulting, Synovate Customer Experience, Synovate Censydiam and Motoresearch.[citation needed]

Synovate was owned by the Aegis Group. It was formed from the acquisition of a number of market research firms such as Blackstone, Market Facts, Censydiam, ISIS Research, Tribi, Symmetrics, Proactive Insights, and AMI.[4]

Synovate was sold by the Aegis to Ipsos on 11 October 2011 for £525 million (€595 million)[5][6] The combination of the 5th and 6th largest market research companies formed the 3rd largest market research company in the world with offices in 84 countries.[7] Ipsos announced the agreement on 27 July 2011, and financed the acquisition through a new debt financing of €250 million.[8] Synovate was fully integrated into Ipsos early in 2012.[9]

Aftermaths

Following the sale of Synovate, Aegis became a scaled media and digital communications specialist. It returned £200 million to shareholders via a special dividend, sharply reducing net debt from £393 million (in the end of 1st half of 2011) to £128 million (in November 2011)[10]

Ipsos's post-merger revenue has declined every year since 2011. In 2013, Ipsos sued Aegis for £100 million compensation over deception on the sale of Synovate.[11] The case was dismissed by the commercial court in 2015[12] [13] .[14]

Sales performance

Year Company Sales
(million USD) 		Year over year change
2009 Synovate (pre-merger) 816.4 -
2010 Synovate (pre-merger) 884.8 +8%
2011 Ipsos (year of merger) 2,495.0 +4%*
2012 Ipsos (post-merger) 2,301.1 -8%
2013 Ipsos (post-merger) 2,274.2 -1%
2014 Ipsos (post-merger) 2,219.9 -2%

* Calculated by using the combined Ipsos and Synovate pre-merger sales of US$2,397 million in 2010 (Ipsos's 2010 sales was US$1,512.8)[15]

References

  1. ^ About Synovate[dead link]
  2. ^ Aegis annual report 2010
  3. ^ Ipsos annual report 2010 section 1.2.2, page 16
  4. ^ (in Dutch) "Marktonderzoeksbureau Synovate gekocht door Ipsos", customertalk.nl (13 October 2011)
  5. ^ Robert Bain "Ipsos must protect Synovate’s ‘golden nuggets’", research-live.com (2 August 2011)
  6. ^ Bradshaw, Tim (2011-07-27). "Aegis agrees £525m sale of Synovate to Ipsos". Financial Times. Retrieved 2018-06-20.
  7. ^ Ipsos Annual Report 2011 Section 4.4 page 12, the year immediately after the merger
  8. ^ Ipsos press release on 27 July 2011 in Paris
  9. ^ "Ipsos Synovate", ipsos-nederland.nl
  10. ^ Aegis annual report 2011 page 06, 10
  11. ^ "Ipsos wants $100m back from Aegis over Synovate Sale – Bloomberg" research-live.com
  12. ^ "High Court strikes out warranty claim due to shortcomings in claim notice", hsfnotes.com
  13. ^ "High Court analyses material adverse event clause", bonddickinson.com
  14. ^ "IPSOS SA v Dentsu Aegis Network Ltd" IPSOS SA v Dentsu Aegis Network Ltd, England and Wales High Court (Commercial Court) Decisions
  15. ^ GfK Annual reports 2010–2015 "Top 10 of the consumer research sector"
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