425
Filed pursuant to Rule 425 under the
Securities Act of 1933, as amended, and
deemed filed under Rule 14a-12 under the
Securities Exchange Act of 1934, as amended.
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Filed by:
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IMS Health Incorporated |
Subject Company:
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IMS Health Incorporated |
Exchange Act File Number of Subject Company:
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001-14049 |
VNU, IMS Health Announce Merger Integration Team
Business Leaders
Dear Colleagues,
This is an exciting and busy time for all of us at VNU and IMS Health. Since announcing our
agreement to merge in July, we have started to move decisively on a number of fronts to bring our
two companies together. Weve talked with clients, the financial community, the media and employees
about our plans and the promise of the merger and how this combination will give us a far
greater capacity to help customers respond to todays market challenges and opportunities. Our
efforts to communicate the benefits of the merger are meeting with real success, and our merger
plans remain on track.
We are pleased to announce the next step in uniting our two businesses: the creation of Merger
Integration Teams to forge a fast, flexible, innovative company and maintain a culture of high
performance. Under the leadership of Chief Transformation Officer Nancy Cooper, these teams will
work to accelerate our ability to capture the benefits of the combined organization, while
minimizing any disruption to the services we provide.
Nancy will head our Integration Program Management Office, which has responsibility for developing
the overall integration plan, identifying critical actions and decisions, and monitoring progress
relative to plans. The Office includes Scott Springer, general manager, Operations, Nielsen Media
Research, for VNU Media Measurement & Information (MMI); Per Troein, vice president, Strategic
Alliances, Europe, Middle East and Africa, representing IMS Health; and Joe Willke, president &
CEO, VNU Advisory Services, for VNU Marketing Information (MI). In addition, Greg Anderson, senior
vice president, chief human resources officer for VNU, is serving as HR lead, and Harshan Bhangdia,
assistant controller, IMS, is Finance lead. Coordinating overall activities for the Office is
Justin Evans, vice president, VNU Corporate Development.
The Integration Program Management Office will oversee four integration teams, which initially will
focus their efforts on identifying revenue opportunities and cost synergies. Over time, these teams
also will address other key transformation initiatives. The teams are:
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Corporate Efficiencies, headed by VNU CFO Rob Ruijter. This team will look at
opportunities for efficiency gains in the areas of Real Estate, Finance, Human Resources,
Treasury, Audit, Corporate Development and Strategy, Investor Relations, Tax, Legal and
Procurement. |
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IT/Production, headed by Kevin McKay, IMS senior vice president, Customer Delivery &
Development. Both VNU and IMS have made significant investments in information technology,
and we can gain |
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efficiencies by moving to common architectures and standards. Our objective is to take
advantage of our scale and experience, balancing the need for speed, efficiency and
quality. This team will address Applications, Production, Infrastructure, and Architecture
and Standards. |
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Regional Efficiency Teams, headed by Bill Nelligan, senior vice president, Strategic
Partners, Americas, IMS; and Pat Gardiner, president, ACNielsen Canada. These regional
teams will identify opportunities for operating efficiencies created by the merger. Both
organizations have already made progress in this area, and are in a very strong position
to accelerate this progress. |
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Revenue Synergies, headed by Tom Markert, senior vice president and chief marketing &
client service officer, VNU MI. This team will explore opportunities for cross-selling and
joint consulting and services engagements. Capitalizing on trends in the marketplace,
including the growing role of consumers in markets we serve, the team will identify ways
to deliver our offerings for new audiences and new markets. |
These leaders will announce additional members of their teams as integration work progresses. An
Integration Steering Committee will provide strategic oversight and direction for all of our
efforts. In addition to the two of us, we have asked Nancy Cooper and Gilles Pajot, EVP and
president, Europe, Middle East and Africa, to represent IMS on the Committee, and Michael
Marchesano, president & CEO, VNU Business Media, US and Nielsen Entertainment; Rob Ruijter; Steve
Schmidt, EVP, VNU MI and president & CEO, ACNielsen; and Susan Whiting, EVP, VNU MMI, and president
& CEO, Nielsen Media Research, to represent VNU.
We will keep you informed every step of the way as we work together to get this great partnership
off to a strong start, and as we reach key milestones in completing the transaction.
This merger is all about creating a strong future for us. We will focus on innovation and
execution, creating a new global leader in market intelligence. We know we can continue to count on
your passion, drive and dedication theres nothing more critical to our success.
Sincerely,
Rob van den Bergh
CEO and Chairman, VNU
Dave Carlucci
CEO and President, IMS Health
About IMS Health Incorporated
IMS Health Incorporated (IMS) provides sales management and market research information services
to the pharmaceutical and healthcare industries worldwide. IMS provides information services
covering more than 100 countries and maintains offices in 76 countries on six continents, with
approximately 64% of total 2004 IMS revenue generated outside the United States. IMS is listed on
the New York Stock Exchange (NYSE: RX).
About VNU N.V.
VNU N.V. (VNU) is a global information and media company with leading market positions and
recognized brands. VNU is active in more than 100 countries, with its headquarters located in
Haarlem, The Netherlands and New York, USA. In 2004, total revenues amounted to EUR 3.8 billion.
VNU is listed on the Euronext Amsterdam stock exchange (ASE: VNU), and VNU is part of the AEX Index
of leading Netherlands-based stocks.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This document contains certain forward-looking information about IMS Health Incorporated
(IMS), VNU N.V. (VNU) and the combined company after completion of the transactions that are
intended to be covered by the safe harbor for forward-looking statements provided by the Private
Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not
historical facts. Words such as expect(s), feel(s), believe(s), will, may,
anticipate(s) and similar expressions are intended to identify forward-looking statements. These
statements include, but are not limited to, financial projections and estimates and their
underlying assumptions; statements regarding plans, objectives and expectations with respect to
future operations, products and services; and statements regarding future performance. Such
statements are subject to certain risks and uncertainties, many of which are difficult to predict
and generally beyond the control of IMS and VNU, that could cause actual results to differ
materially from those expressed in, or implied or projected by, the forward-looking information and
statements. These risks and uncertainties include, but are not limited to: the failure of
stockholders to approve the transaction; the risk that the businesses will not be integrated
successfully or that doing so will be costly or result in significant charges; the risk that the
cost savings and any other synergies from the transaction may not be fully realized or may take
longer to realize than expected; the results of the reconciliation of IMS financial statements
into IFRS and the results of the reconciliation of VNUs results into U.S. GAAP; disruption from
the transaction making it more difficult to maintain relationships with customers, employees or
suppliers; competition and its effect on pricing, spending, third-party relationships and revenues;
the ability to obtain governmental approvals of the transaction on the proposed terms and schedule;
the risk that VNU is not able to maintain its status as a foreign private issuer; risks associated
with operating on a global basis, including fluctuations in the value of foreign currencies
relative to the U.S. dollar, and the ability to successfully hedge such risks; to the extent the
companies seek growth through acquisition, the ability of the companies to complete development of
or to develop new or advanced technologies and systems for their businesses on a cost-effective
basis; the ability to successfully achieve estimated effective tax rates and corporate overhead
levels; competition, particularly in the markets for pharmaceutical information and audience
measurement services; regulatory and legislative initiatives, particularly in the area of privacy;
the outcome of pending legal and regulatory proceedings; leverage and debt service (including
sensitivity to fluctuations in interest rates); compliance with covenants in loan agreements; the
ability to obtain future financing on satisfactory terms; deterioration in economic conditions,
particularly in the pharmaceutical, healthcare, media, information technology or other industries
in which customers operate; and conditions in the securities markets which may affect the value or
liquidity of portfolio investments. Readers are cautioned not to place undue reliance on these
forward-looking statements that speak only as of the date hereof. Neither IMS nor VNU undertakes
any obligation to republish revised forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events. Readers
are also urged to carefully review and consider the various disclosures in IMS various reports
with the Securities and Exchange Commission (SEC), including but not limited to IMS Annual
Report on Form 10-K for the year ended December 31, 2004 and IMS Quarterly Reports on Form 10-Q
for the quarterly period ending June 30, 2005, and VNUs Annual Report for the year ended December
31, 2004, which have been filed with the SEC. You may read and copy the above-mentioned SEC
filings and other information at the public reference facilities maintained by the SEC located at
100 F Street, N.E., Washington, D.C. 20549. Copies of these materials can be obtained from the
Public Reference Section of the Securities and Exchange Commission at prescribed rates by calling
the Commission at 1-800-SEC-0330. Many of these materials are also available at the SECs Internet
site (http://www.sec.gov).
Additional Information and Where to Find It
This document may be deemed to be solicitation material in respect of the proposed merger of
IMS and VNU. In connection with the proposed transaction, VNU and IMS will file a registration
statement on Form F-4, including the preliminary joint proxy statement/prospectus constituting a
part thereof, with the SEC. VNU and IMS will file a definitive registration statement, including a
definitive joint proxy statement/prospectus constituting a part thereof, and other documents with
the SEC. STOCKHOLDERS OF IMS AND VNU ARE ENCOURAGED TO READ THE DEFINITIVE REGISTRATION STATEMENT
AND ANY OTHER RELEVANT DOCUMENTS FILED OR THAT WILL BE FILED WITH THE SEC, INCLUDING THE DEFINITIVE
JOINT PROXY STATEMENT/PROSPECTUS THAT WILL BE PART OF THE DEFINITIVE REGISTRATION STATEMENT, AS
THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED
MERGER. The final joint proxy statement/prospectus will be mailed to stockholders of IMS and VNU.
Investors and security holders will be able to obtain the documents free of charge at the SECs web
site, www.sec.gov, from IMS Investor Relations at 1499 Post Road, Fairfield, CT, 06824 or from
VNUs Investor Relations at Ceylonpoort 5-25, 2037 AA Haarlem, The Netherlands.
Participants in Solicitation
IMS, VNU and their directors and executive officers and other members of their management and
employees may be deemed to be participants in the solicitation of proxies in respect of the
proposed transaction. Information regarding IMS participants is set forth in the proxy statement,
dated March 23, 2005, for IMS 2005 annual meeting of stockholders as filed with the SEC on
Schedule 14A. Information regarding VNUs participants is set forth in VNUs Annual Report for the
year ended December 31, 2004. Additional information regarding the interests of IMS and VNUs
participants in the solicitation of proxies in respect of the proposed transaction is included in
the registration statement and joint proxy statement/prospectus filed with the SEC.
Regulation G Legend
This presentation may contain certain non-GAAP financial measures. Reconciliations between certain
non-GAAP financial measures and the GAAP financial measures will be made available in the joint
proxy statement/prospectus. VNU figures have been prepared in accordance with Dutch GAAP and IFRS.
IMS figures are prepared in accordance with U.S. GAAP. All pro forma consolidated financial
information has been prepared by aggregating financial information based on these differing
accounting standards and might be materially different if IMS figures were presented in accordance
with Dutch GAAP or IFRS or if VNU figures were presented in accordance with U.S. GAAP. The
definitive registration statement, including the definitive joint proxy statement/prospectus, may
include adjustments to the financial statements of VNU to reflect differences between U.S. and
Dutch GAAP and between the U.S. and Dutch approaches to financial statement presentation.