ComScore said it will merge with Rentrak in a deal that will combine Web and mobile analytics and data with entertaining and marketing metrics.
Under the terms of the deal, Rentrak will become a subsidiary of comScore. Each share of Rentrak will be converted to 1.15 shares of comScore. When the dealing is done, comScore shareholders will own 66.5 percent of the combined company with Rentrak stock holders getting 33.5 percent.
The upshot here is that comScore and Rentrak combined are a stronger rival to Nielsen. Nielsen dominates media consumption metrics, but has fielded complaints from customers in recent months over tracking across multiple digital platforms.
As for the management, comScore CEO Serge Matta will lead the combined company. Bill Livek, Rentrak's CEO, will be executive vice chairman and president.
The aim for the companies is to provide a broad suite of analytics tools and metrics to follow consumers across multiple screens. The combined company will be better suited to track media consumption and advertising across various platforms.
ComScore said the merger will be "mildly dilutive" to its non-GAAP earnings in 2016 and add to the bottom line in 2017. There are about $20 million in synergies in 2016 and $35 million in 2017.