Informa acquires Ascential for £1.16 bn

UK (Commonwealth) _ The event giant, Informa has agreed to purchase it’s competitor Ascential, which runs the Cannes Lions advertising festival for £1.16 billion.

Ascential had a more than 26.4 % increase in share price following the transaction. Informa shares also rose 3.8%. Informa, a FTSE 100 company, informed shareholders on Wednesday morning that it had agreed to purchase its rival for 568 pence per share.

Informa, the world’s largest trade show operator, expects the contract to result in at least £12 million in cost savings and efficiency gains per year. Ascential’s potential purchase comes after the business unveiled intentions to break apart its assets last year, and sold digital commerce segment Flywheel to Omnicom for approximately £740 million.

Informa’s CEO, Stephen A Carter, stated that the agreement will allow the company to assist build some of Ascential’s main brands. He stated, “Informa is in the business of building, developing, and expanding world-class B2B (business-to-business) brands.

This offer will not only produce significant value for our shareholders, but will also, coupled with Informa’s international reach and broad skills in data and analytics, unleash future development potential for our brands and people.

Ascential CEO Philip Thomas cited Lions and Money20/20 as excellent examples of such brands. He went on to say that when they work together, they can extend into new areas, accelerate growth, and seize chances.

According to Philip Thomas, this offer would not only provide significant value to our shareholders, but it will also open up new development potential for our brands and employees, thanks to Informa’s global reach and strong data and analytics capabilities.

On Wednesday, Britain’s Informa said that it has agreed to buy Ascential, the owner of the Cannes Lions Festival, for 1.2 billion pounds ($1.6 billion), adding the prestigious advertising industry convention to its portfolio of events.

Ascential, which also owns the Money20/20 fintech events, announced on Tuesday after the market closed that it had received the cash offer, which it intended to endorse. . Informa stated that it will extend both events into new areas and accelerate growth, aided by its first-party data platform and knowledge of the marketing and finance industries.

It has agreed to pay 568 pence per share, a 53% premium to Monday’s closing price of 371 pence.

Informa announced the transaction alongside its first-half results, which showed underlying operating profit growth of 18.8% and sales growth of 11%. The good result allowed them to raise its expectations for the entire year.

It stated that adjusted operational profit will exceed current projection of 970 million pounds, perhaps reaching 1 billion pounds. ($1 equals 0.7756 pounds.) Informa plc is a British publishing, business intelligence, and Events Corporation headquartered in London, England. It is listed on the London Stock Exchange and part of the FTSE 100 Index.

It has offices in 43 countries and around 11,000 workers. Informa owns many brands, including CRC Press, Fan Expo HQ, Game Developers Conference, Routledge, and Taylor & Francis. Informa purchased UBM in June 2018 as part of its expansion plan in North America and Asia.

Informa owns many brands, including CRC Press, Fan Expo HQ, Game Developers Conference, Routledge, and Taylor & Francis. Retired and combined names include Institute for International Research, Ovum Ltd, Penton, The Public Ledger, and UBM.

Informa is divided into four operational divisions: Informa Connect, Informa Markets, Informa Technology, and Taylor and Francis. In June 2021, John Rishton was named as chairman, succeeding Derek Mapp.

Ascential plc (previously EMAP) is a British business-to-business media corporation focused on exhibits, festivals, and information services. It is listed on the London Stock Exchange and is part of the FTSE 250 Index. Ascential produces four informative service categories geared toward enterprises in the digital economy. The four categories are product design, marketing, sales, and the built environment and policy.

In March 2012, the company rebranded itself Top Right Group and split its publications, events, and data activities into three different organizations. In December 2015, Top Right Group renamed as Ascential. In February 2016, the business launched an initial public offering at £800 million. The Guardian Media Group sold its stakes in Ascential in 2016 and 2017.  In June 2017, Ascential sold legacy brands (business-to-business titles) to Metropolis International. The sale includes rights to the EMAP name (as EMAP Publishing Ltd).