ComScore and Rentrak announce merger

US — Audience measurement firm comScore has agreed to acquire its rival Rentrak in an-all stock deal valued at $732m.

ComScore is known for its internet traffic measurement while Rentrak uses set-top box data to gauge TV viewing. The merging of the two companies creates a significant competitor to rival measurement company Nielsen.

The announcement on comScore’s company blog outlined the rationale for the merger as offering an improved ability to deliver a comprehensive cross-platform measurement currency.

According to the Wall Street Journal, Rentrak will merge into a wholly owned subsidiary of comScore and each share of Rentrak will be converted into the right to receive 1.15 comScore shares. This places the value of Rentrak at $732m, in comparison with a reported market value of $697m recorded on Tuesday. When the deal closes, which is expected in early 2016, comScore shareholders will own around 67% of the combined company, with Rentrak shareholders holding the rest.

Chief executive of comScore, Serge Matta (pictured), will lead the combined company. Rentrak chief executive Bill Livek will serve as vice chairman and president.