NetRatings to buy RedSheriff for $12m

The internet measurement and analysis sector is consolidating, with NetRatings purchasing RedSheriff, a provider of site-specific audience measurement services.

NetRatings said in a statement it had acquired for $12m a 58 per cent shareholding in RedSheriff previously held by Morgan Grenfell Private Equity, which manages various funds of Deutsche Equity Partners IV.

NetRatings, which provides internet audience measurement and analysis services, is poised to record revenues of between $40.3m and $40.7m for full year 2003.

Its current clients include Microsoft, The New York Times Digital and Yahoo.

NetRatings president and CEO, Bill Pulver and RedSheriff CEO Richard Webb said in a letter to clients NetRatings planned to purchase the remainder of the company by the end of January.

"Through this transaction, we aim to meet the needs of our clients and the industry by providing the currency in internet metrics, whether they are based on the behaviour of consumers or on the performance of websites," the executives said in a statement.

RedSheriff presently has 63 employees and 12-month trailing revenues of around $7.5m through 30 September 2003. It services around 500 clients.

Staff Writers, ZDNet Australia