Informa reaches agreement to buy rival event organiser Ascential for £1.2bn

Monaco Yacht Show organiser Informa has agreed to acquire events company Ascential for around £1.2bn.

Under the proposed deal, Ascential investors will receive £5.68 per share, a premium of around 53 per cent to the FTSE 250 company’s closing share price on Monday.

Informa said it expects the acquisition to provide “significant revenue opportunities” through cross-selling and expansion into “fast-growing” economies.

The London-based group wants to expand Ascential’s financial technology business, Money20/20, into the Middle East and Africa, where the payments industry is experiencing considerable growth.

Informa is particularly keen to target growth in Saudi Arabia, home to its Tahaluf joint venture and a major source of fintech investment.

In parallel, the FTSE 100 firm intends to position the Cannes Lions advertising and marketing event as the “centrepiece” of a new division, Informa Festivals.

If approved, the acquisition would be Informa’s largest since it bought UBM for £3.9bn in 2018, helping the company become the world’s largest B2B events operator.

Informa’s most recent acquisitions include Dubai Airshow organiser Tarsus Group (bought last year in a £793m deal) and foodservice information specialist Winsight for $380m.

Stephen A. Carter, CEO of Informa, said his company is “dedicated to creating, nurturing and growing world-class B2B brands.”

He added: “Lions and Money20/20 are leading examples of these types of brands. Combined, we can expand them into more sectors, accelerate growth and seize new opportunities.”

Upward Actions rose 25.8 percent to 562 pence on Wednesday morning after the announcement, but Informa Actions It actually fell 0.8 percent to 840.2 pence.

Formerly known as EMAP, Ascential has undertaken a review of its operations as part of a “disintegration plan” launched in January 2023.

It has since sold two divisions: fashion forecasting business WGSN to former owner and private equity giant Apax Partners, and digital commerce segment Flywheel to marketing agency Omnicom Group.

Of the combined £1.4bn it received from the two sales, Ascential announced in March that it would return £850m to shareholders.

Two months later, Informa said it would buy back £500m of its shares in 2024 following a strong performance in the first four months of the year.

Philip Thomas, CEO of Ascential, said: ‘Informa is a highly respected company, renowned for its B2B events expertise, strong, ethical culture and commitment to innovation.

‘This offer will not only bring substantial value to our shareholders, but together with Informa’s international presence and extensive data and analytics capabilities, will unlock further growth opportunities for our brands and our people.’