InfoUSA to Buy Research Firm Guideline for $41.6 Million

By Virgil Larson, Omaha World-Herald, Neb.

Jun. 29–InfoUSA Inc. said Thursday it plans to buy another market research company, Guideline Inc., that will bring “highly complementary” products to its existing research services.

InfoUSA, based in Omaha, said the acquisition will cost $41.6 million, which includes assumption of the New York City company’s debt.

InfoUSA is to pay $1.35 a share for Guideline’s common stock, which closed Thursday at $1.10, unchanged from Wednesday.

Last December, InfoUSA closed on the acquisition of Opinion Research Inc., a major polling and business research company. That deal cost $128 million.

Guideline will operate independently within InfoUSA, according to the announcement. Marc Litvinoff, who has been with Guideline since 2004, will become chief executive officer.

The deal is expected to close in the July-September quarter and to add to InfoUSA’s earnings this year. Guideline had $46 million in revenue last year.

InfoUSA had $434 million in revenue and profits of $33 million in 2006. It has estimated this year’s revenue at $620 million to $630 million with a full year of Opinion Research results. Opinion Research’s 2005 revenue was $190 million.

InfoUSA’s announcement laid out steps intended to finish the deal without having to hold a vote of Guideline stockholders.

The Omaha company said executives, directors and “significant shareholders” of Guideline, who together own 59 percent of the shares, have agreed to tender their shares to InfoUSA and, if necessary, vote against any competing offer.

Guideline also has granted to InfoUSA options on enough shares to give it more than 90 percent of Guideline’s stock, the Omaha company said.

Vin Gupta, chairman and chief executive of InfoUSA, said the Opinion Research and Guideline deals are “significant” moves toward consolidating the “fragmented market research industry.”

InfoUSA’s stock closed down 3 cents at $10.25.

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