Buyer sought for Greenfield survey arm as ZM deal collapses

US-- Microsoft is again on the search for a buyer for Greenfield Online's internet survey solutions (ISS) business, after an agreement to sell it to a private equity firm fell through.

The tech giant bought Greenfield for its Ciao comparison shopping business in a deal worth $486m, and had struck a deal with ZM Capital for it to take on the online survey arm for $120m.

But Keith Price, head of the Greenfield survey business, told Research today that the ZM transaction – which was supposed to take place at the same time as the Microsoft takeover in mid-October – has fallen through.

The failure of the deal was, he said, “because of the financial conditions, not surprisingly. There were financing contingencies that couldn't come together properly”.

Having never intended to run Greenfield's survey arm, Microsoft has now had to appoint Dave O'Hara, one of its own executives, as interim leader of the business, while Greenfield chief executive Albert Angrisani, whose contract concludes at the end of the year, has agreed to stay on to support O'Hara in an advisory role while the firm looks for a buyer.

Price said he did not feel Greenfield would be a liability to its new interim owner. “It's on the public record that while Microsoft really likes the [ISS] business it's not core to their strategy,” he said. “They're confident that we have a really strong executive team and our strategy is pretty well laid out for what we want to do, so we'll continue to drive those initiatives forward if we're under the Microsoft umbrella or whoever eventually buys us. They're not in a rush. They're going to identify the right buyer.”

O'Hara said the ISS business is “fundamentally strong” and run by a “seasoned and professional management team”.

Angrisani said in a statement yesterday: “The company, its employees and its clients are important to me and I want to make sure the transition is flawless and that we find the right home for the ISS business.” Once a buyer is found, Angrisani, whom Price described as a “professional turnaround CEO”, is expected to move on.

Price said it was too early to comment on who might buy the ISS business or when a sale might take place. As for the immediate outlook, he said: “We're going to see if we can invest a little more in building our core panels particularly in Europe, and make some investments ahead of revenue in markets like Brazil, Russia, India and China.”

Author: Robert Bain

Related links:

Microsoft completes Greenfield buy

ZM Capital to pay $120m for Greenfield survey arm

ZM Capital named as Greenfield survey buyer