ZM Capital to pay $120m for Greenfield survey arm

US-- Private equity firm ZM Capital is to pay $120m to buy Greenfield Online's internet survey solutions (ISS) arm, it was revealed yesterday.

ZM Capital will buy the survey business from Microsoft, which entered into a $486m deal to acquire Greenfield in August. However, the software giant is only interested in keeping the Ciao comparison shopping part of the business.

The purchase price of the ISS division was revealed in a filing with the Securities and Exchange Commission yesterday, in line with a Memorandum of Understanding (MOU) Greenfield and Microsoft have entered into with Greenfield investor Craig Ginman.

Ginman sought to prevent the takeover by filing a class action lawsuit two weeks ago, claiming that the Microsoft deal undervalued Greenfield and that the board had “failed to conduct a bona fide market check or auction” before accepting Microsoft's offer.

He sought to block the acquisition “until a proper process is conducted to evaluate Greenfield's strategic alternatives”, and requested that the case was expedited so that it was heard before the 8 October deadline on Microsoft's tender offer for Greenfield shares.

But on 22 September Greenfield, Microsoft and Ginman entered into an MOU in which Greenfield agreed to make certain additional disclosures in relation to the deal in exchange for a settlement that will include a general release of all claims.

A definitive settlement agreement still has to be thrashed out and approved by the court, Greenfield said.

Author: Brian Tarran

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