Informa snaps up listed events rival Ascential in sign of buoyant sector
UK events group Informa has snapped up London-listed rival Ascential in a bid that valued the owner of the Cannes Lions festivals and Money 20/20 at approximately £1.2bn.
The deal, which valued each Ascential share at 568p, a premium of roughly 53 per cent to the closing price on Monday, is yet another sign of the events industry’s emphatic recovery following years of disruption during the pandemic.
It is also further evidence of Informa’s acquisitive direction under new CEO Stephen Carter, having signed a near $1bn (£721m) deal on the events company Tarsus in March last year.
Ascential shares jumped over 50 per cent overnight to reflect Informa’s valuation of the FTSE 250 firm.
The recommended offer comes after several bids from Informa, which also owns the academic publisher Taylor & Francis, that were kept under wraps for much of the bidding process.
Stephen Carter, chief executive of Informa, said of the deal: “Informa is in the business of creating, nurturing and growing world class B2B brands. 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.”
News of the deal was announced alongside Informa’s half-year results, in which Informa posted double-digit underlying growth of 11 per cent and an increase in operating profit of 18.8 per cent.
The strong figures led the firm to raise its full year guidance for 2024, with the firm expecting its results to be above the top-end of the guidance range. It is hoping to deliver adjusted profit of up to £1bn.
Commenting on the results, Carter said: “”As the world digitises at pace, our brands, our content and our market positions are becoming more valuable. This is moving Informa into a faster growth lane for performance, expansion and returns, as demonstrated by our full year target of up to £1bn of adjusted operating profit and today’s recommended offer for Ascential plc.”