iSuppli, a value chain research firm whose expertise includes tearing apart game consoles and estimating manufacturing costs, is to acquire TV, film and game research firm Screen Digest, the companies said Thursday.
iSuppli said that it entered into an "agreement in principle" with Screen Digest that is expected to lead to the acquisition of its fellow research firm.
Screen Digest and its wholly-owned subsidiary Adams Media Research will become part of El Segundo, CA-based iSuppli once the transaction is complete. The companies did not reveal financial terms of the agreement, which is expected to finalize before the end of this year.
iSuppli specializes in analysis of the electronics value chain. The company routinely tears down electronics hardware
, including Xbox 360 and PlayStation 3, and evaluates and estimates how much their manufacturers spend on each console. This gives an idea of just how much money a company is making or losing on the sale of each piece of hardware.
UK-based Screen Digest's research is often cited in the games press as well, with one Screen Digest analyst recently forecasting that big media conglomerates like Disney will soon offer stronger competition
against pure-play game publishers like Activision and Electronic Arts.
The two companies will use each others' international offices to gain a stronger worldwide foothold. "Screen Digest’s strong London base would enhance the iSuppli analyst and sales presence in Europe and serve as a launching pad for the combined companies’ services," said iSuppli president and CEO Derek Lidow in a statement.
"The highly-developed iSuppli sales and marketing organization on other parts of the globe, particularly in North America and in Asia, will be exercised to support the acquisition," he added. Lidow said that he expects there to be no redundancies related to the acquisition.