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Informa PLC (LSE:INF) and Ascential PLC have announced an agreement for a recommended cash offer by Informa for the entire issued and to be issued share capital of Ascential. The transaction is intended to be carried out via a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act.
Under the terms of the offer, each Ascential shareholder will receive 568 pence in cash for each Ascential share held. This offer values Ascential at approximately £1.2 billion on a fully diluted basis.
Premium and Financial Terms
The cash consideration represents a significant premium:
- 53% over the closing price of 371 pence per Ascential share on July 22, 2024.
- 61% over the thirty-day volume-weighted average price of 352 pence per Ascential share.
- 67% over the sixty-day volume-weighted average price of 340 pence per Ascential share.
Additionally, Informa and Ascential have agreed that if the Hudson Disposal is completed before the date of the Sanction Hearing, the Net Sale Proceeds will be returned to Ascential shareholders through a cash dividend. Shareholders will receive this dividend without any reduction in the cash consideration payable under the offer.
Strategic and Commercial Rationale for Informa
Informa expects the acquisition to unlock significant revenue opportunities, including cross-selling and expansion into fast-growing economies where Informa already has a strong presence. The company anticipates approximately £12 million in annual cost savings and efficiency improvements by integrating Ascential into its operations. These efficiencies, combined with potential tax benefits, imply a low double-digit multiple of enterprise value to Ascential's estimated EBITDA in 2025.
Key Strategic Focus Areas
- B2B Brands Expansion: Informa plans to leverage its extensive experience in nurturing major events brands to enhance Ascential's Lions and Money20/20 platforms, aiming for further growth and expansion.
- FinTech Sector Opportunities: The acquisition of Money20/20 will allow Informa to expand into rapidly growing regions like the Middle East and Africa, particularly in the financial technology sector.
- Marketing and Festivals: Informa intends to create a new business unit, Informa Festivals, centered around experience-led festival brands, with Cannes Lions as the centerpiece. This new unit will combine Informa’s existing festival brands with Lions’ expertise, driving further growth in the B2B events space.
- Global Operating Platform: Informa’s global operating platform will support and expand Ascential’s businesses, providing operational efficiencies and access to new markets.
- First Party Data Integration: Informa’s IIRIS platform will enhance the data and analytics capabilities of Ascential’s businesses, improving customer engagement and enabling the launch of new services.
The acquisition of Ascential by Informa is positioned as a strategic move to strengthen and expand Informa’s global platform, providing significant opportunities for future growth and value creation.
