Market research aggregator MarketResearch.com, which Outsell analyst Louise Garnett identifies as a “rising star” in an upcoming Outsell MarketView on the market research sector, has acquired MindBranch, its closest rival in the research aggregation space. Both companies offer syndicated research reports from multiple vendors. MarketResearch.com is the biggest company in the space, with about $12 million in revenue, and MindBranch was second with about $6.5 million in revenue (Outsell estimates). MarketResearch.com grew by 70 percent in 2004 and clearly dominates research aggregation. Others in the space include AROQ, Research and Markets, and CMS Business Information.
The deal gives two primary advantages to MarketResearch.com: It expands its distribution network to include MindBranch’s Asian markets, and it increases MarketResearch.com’s research inventory by 40 percent. Enterprise buyers of market research are increasingly relying on aggregators to consolidate their purchases of secondary research. The name of the game here is critical mass; this deal clearly gives MarketResearch.com the most comprehensive collection and its customers more choices.
The deal also reflects the prevailing surge in interest in syndicated research in the research industry. During economic downturns, buyers tend to turn to custom research as they make tactical changes to improve performance. In the current upturn, however, more companies are looking to expand with new products and into new markets – and syndicated offerings are a good starting point to frame new markets and potential areas for expansion.
The bottom line is that this is a good move that’s a fit for both companies. It consolidates the sector, but has significant benefits for MarketResearch.com customers.