Microsoft to sell Greenfield Online's internet survey solutions business to ZM Capital affiliate

By Lisa Kerner

Charlotte, N.C., Sept. 10 - Microsoft Corp. said it is selling Greenfield Online, Inc.'s internet survey solutions business to ZM Survey LLC, a ZM Capital, LP affiliate, for an unspecified amount.

The sale is in connection with Microsoft's acquisition of Greenfield Online.

A Microsoft spokesperson said Greenfield Online's ISS business is not a fit for Microsoft's Live Search platform strategy. Instead, Microsoft will focus on acquiring Greenfield Online and its Ciao comparison shopping business as a means to boost Microsoft's commercial search strategy in Europe.

Greenfield's ISS business collects, organizes and sells consumer and business data.

ZM Capital, a private equity investment firm, will keep the ISS business as a standalone, independent, privately held company, according to a Microsoft news release.

Greenfield Online president and chief executive officer Albert Angrisani called the sale a "very positive development for ISS clients and employees."

The merger of Greenfield Online with Microsoft and the Redmond, Wash., software company's sale of the ISS business are expected to close simultaneously in the fourth quarter of 2008.

According to ZM Capital, the transaction will be its first portfolio investment.

Greenfield Online was advised by Deutsche Bank Securities Inc.

NewStar Financial and CIT are providing senior financing and Veronis Suhler Stevenson's Structured Capital fund is providing mezzanine financing in connection with ZM Capital's acquisition.

Wilton, Conn.-based Greenfield Online terminated its merger agreement with affiliates of Quadrangle Group and agreed to be acquired by Microsoft in a cash tender offer valued at approximately $486 million, or $17.50 per share, it was announced in August.

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