[May 12] Total Research
Corporation
of New Jersey announced Friday the completion of its purchase of European
Internet research company Romtec Plc for $7.2 million.
Total Research is paying for the acquisition in cash and notes, $4.1 million
now
and the remaining $3.1 million over two years. However, only $2.1 million
of the outstanding sum is guaranteed, with Romtec obliged to meet specified
operating targets to obtain the last $1 million.
Based in the U.K., Romtec provides market research, contact databases,
direct
marketing and tracking services for IT and telecommunications clients. By
coincidence, its two largest clients are the two Fortune 100 corporations
that are also the largest clients of Total Research.
Albert Angrisani, president and chief executive officer of Total Research,
said
the acquisition put Total Research among the top 20 marketing research firms
in both Europe and the U.S. He said that the two companies would blend their
Internet capabilities to achieve a leadership role in global Internet
research.
“Romtec expands our data collection and delivery system in Europe and allows
us to offer clients seamless delivery of research services between the
two continents,” said Angrisani.
“The acquisition will allow Total Research to offer integrated marketing
services
to its global Fortune 500 client base through a variety of new services,
including proprietary databases and added value direct and channel
marketing.”
Speaking for Romtec, Chairman and Managing Director Russ Nathan said the
synergies of the merger would create opportunities for both companies.
“Total and Romtec have complementary Internet-based businesses, products,
and
common technology, which will bring greater value to our clients around the
world. It will also strengthen the Internet and e-commerce capabilities of
both companies,” added Nathan.
At the year to the end of June, 1999, Total Research’s revenues were $41.5
million, with net income of nearly $2 million. To the end of January 2000,
Romtec’s revenues were $6.6 million with net income of $300k.
