Acquisition of SMG Insight Published: May 24, 2018

24 May 2018

YouGov plc ("YouGov" or "the Company")

Acquisition of SMG Insight

-Expands YouGov's reach in the sports sector -

- Opportunity to develop new syndicated data products for the sports industry -

YouGov, the international market research and data analytics group, is pleased to announce the acquisition of SMG Insight Limited ("SMG Insight"), the global sports research agency. During 2010, YouGov formed a strategic research partnership with SMG Insight to support the agency's growth and the Company has since held a 20% stake in the business. YouGov will acquire the remaining 80% stake, following completion of this transaction.

SMG Insight specialises in media measurement and sponsorship evaluation in the sports sector. With operations in the UK, US, UAE, India and Australia, SMG Insight has developed a global network of industry contacts and sponsors including the ATP World Tour, Emirates and the Volvo Ocean Race. The acquisition will provide YouGov with the opportunity to develop new syndicated data products for the sports industry by applying SMG Insights' specialist sector expertise to YouGov's existing data products infrastructure.

The remaining 80% stake is being acquired from Frank Saez, the founder and Managing Director of SMG Insight, who will continue in his role leading the team of 55 employees. With over 15 years' experience in the field of global sports business analysis and research, Frank has developed and led multi-million pound research agencies including IFM Sports Marketing Surveys and Comperio Research, a division of IMG.

As at 31 March 2018, SMG Insight had gross assets of £2.4m and it generated £1.2m PBT in the year to 31 March 2018. Cash consideration of £1m is payable at completion, with a further £1m payable in 12 months, in addition to deferred consideration reflecting a 4.25x multiple of EBITDA to be paid over a three year period. Total consideration is capped at £21m. Following completion, YouGov will consolidate SMG Insights in its accounts.

Stephan Shakespeare, CEO of YouGov, commented:

"For the SMG team, this represents a logical and exciting development as they see a strong partner of many years become a strong and committed parent. Frank and his team are leaders in the industry, and this deal represents another positive step in line with our guiding strategy: to align differentiated products and services in a single connected data system and generate new opportunities for growth."

Frank Saez, Managing Director of SMG Insight, commented:

"We have worked closely with YouGov since we first opened our doors and have built a strong relationship over that time. Bringing SMG Insight's sports expertise and innovation together with YouGov's reach and technology will create a really powerful proposition for the sector. The deal cements the reputation we've earned in the industry as the people to come to for new ideas."

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