StockMarketWire.com - Advertising company WPP said it had agreed to sell 60% of its data and analytics business Kantar to Bain Capital in a deal that valued the business at around $4bn including debt.

Proceeds to WPP on completion after tax and continuing investment in Kantar were expected to be around $3.1bn (£2.5bn).

'This transaction creates value for WPP shareholders and further simplifies our company,' WPP chief executive Mark Read said.

'With a much stronger balance sheet and a return of approximately 8% of our current market value to shareholders planned, we are making good progress with our transformation.'

The deal price valued Kantar at 8.2 times its headline Ebtida.

WPP said it would use 60% of the sale proceeds to cut its debt, with the remaining proceeds of around $1.2bn (£1.0bn) to be returned to shareholders.

The impact of the sale and use of proceeds were expected to be marginally dilutive to headline earnings per share in 2021. Story provided by StockMarketWire.com