- July 1, 2010

Comscore Acquires the Products Division of Nexius

Today, Comscore announced the acquisition of the products division of mobile network analytics provider Nexius, Inc., called the Xplore product suite. I want to offer a few thoughts on why we are so excited about this news.

At Comscore, we have a long history of providing customized solutions for key industry verticals, such as media companies, advertisers, CPG and financial services. In recent years, telecommunications companies – and the wireless operators in particular – have been an important source of growth for us. In the U.S. alone, the wireless industry represents more than $150 billion in annual revenue, a number that has tripled over the past decade. It is a massive market that is poised for continued expansion.

However, wireless operators all over the world face a fiercely competitive and highly fluid environment. There are a host of infrastructure challenges that vary by country, and they must deal in real-time with a broad set of technical, performance and customer-facing challenges to secure their fair share of this growth. The explosion of voice and data usage in the last several years has resulted in internal data challenges that are orders of magnitude greater than what they were just 3 years ago. Tools that enable network performance metrics that can be used by management to make better decisions about network expansion and to monitor and respond to customer experience are tantamount. Once acquired, keeping customers is the name of the game.

This is where the Nexius Xplore solution comes in. This offering consists of an innovative suite of analytical products that provide the mission critical insights needed to help mobile operators compete in these areas. Products built on the Xplore platform enable network operators to manage the influx of data, and use it to enhance operational efficiencies and reduce customer churn.

This acquisition represents an important phase in the series of steps Comscore has undertaken to deliver value to this key industry vertical. Our 2008 acquisition of M:Metrics gave us the ability to measure mobile media usage and other mobile consumer dynamics, providing us with a front row seat for the emergence of this rapidly developing medium. Our recent partnership with the GSMA in the U.K. has provided us with key insights and understanding of the operators at a census level. The acquisition of the Nexius Xplore platform now allows us to deepen our relationships with operators even further and engage with them internally at the network level to help them solve some of their most important data management, analytical, and CRM challenges. We are confident that this acquisition will strengthen Comscore’s position in the mobile marketplace through expanded product offerings.

Operationally, this acquisition presents several areas of synergy. First, Comscore has the ability to leverage its global footprint to scale the Xplore product suite across its existing international markets. In addition, the Nexius Xplore team also has international offices in the Middle East and Eastern Europe that will enable Comscore to expand existing services into new international markets.

We also see this acquisition as a strong cultural fit, with both companies possessing a similar DNA as entrepreneurial companies known for their technological leadership and spirit of innovation. Bringing Xplore into the Comscore tent will enable us to provide an even broader set of solutions and resources to help our clients measure the changing dynamics of the wireless ecosystem. Foremost among these resources is the exceptional talent Nexius brings with them. Nabil Taleb (Nexius CEO) will join the Comscore senior management team and will be named EVP of Comscore Wireless Solutions, bringing with him a team of wireless industry veterans that understand the needs and challenges of network operators.

On behalf of the entire Comscore team, we welcome the Nexius Xplore team and look forward to the continued growth of our wireless business.

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