Informa has agreed a £1.2 billion deal for fellow listed events company Ascential.
Ascential, which runs the popular Cannes Lions and Money20/20 conferences – focused on advertising and FinTech respectively – is recommending the offer to shareholders.
Now employing around 700 people, Ascential recently divested its tech businesses – focused on digital commerce and trend forecasting – for £1.4bn to focus on events.
The offer of 568 pence in cash per share, representing a 53% premium to the closing price of 371p on Monday – the last day prior to the offer period – values Ascential at £1.2bn.
Meanwhile Ascential holds a 36.5% stake in Hudson, which is in the process of being sold. Should that deal complete prior to the date of the sanction hearing, net sale proceeds will be returned to Ascential shareholders by way of a cash dividend with no impact on the Informa offer.
Informa said it expects significant revenue opportunities to arise through combination, including through cross-selling and expansion into fast-growth economies where Informa has an established position – with the Middle East and Saudi Arabia a clear focus.
Informa also expects around £12m of annual cost savings and efficiency improvements by combining Ascential into its operating platform.
“Informa is in the business of creating, nurturing and growing world class B2B brands,” said Stephen A. Carter, CEO of Informa.
“Lions and Money20/20 are outstanding examples of such brands. Combined, we can expand them into more sectors, accelerate growth and take advantage of new opportunities.
“Informa has the operating platform and capacity. We have international reach into growth sectors. We have IIRIS, our First Party Data Platform, and we have an understanding of both the FinTech and Marketing sectors.
“These strengths make us ideally placed to capture the growth and acceleration opportunities available to both Lions and Money20/20.”
Philip Thomas, CEO of Ascential, added: “I am extremely proud of all of Ascential’s brands, and the people who work so har\d to deliver for them every day.
“Our two divisions, Lions and Money20/20, have transformed how our customers around the world experience events, and benefit from both digital intelligence and advisory services. The value our businesses bring to their respective industries is clear as is the regard in which they are held by Informa.
“Informa is a highly respected business, famed for its expertise in B2B events, strong, ethical culture and commitment to innovation. This offer will not only deliver substantial value for our shareholders but also, together with Informa’s international footprint and extensive capabilities in data and analytics, will unlock further growth opportunities for our brands and our people.”
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