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Events and publishing giant Informa has big plans to enter the marketing and fintech verticals.
Miguel Neves
On Wednesday, publishing and events giant Informa publicly announced a proposed takeover bid for Ascential, owner of the Lions and Money20/20 businesses, for $1.55bn (£1.2bn) in cash.
The two companies agreed to a cash offer of $7.35 (£5.68) per Ascential share, a 53% premium to the closing price two days ago. Before the deal was announced, Ascential was valued at around $968m (£750m).
Informa acquired Tarsus in March 2023 for $940 million. The acquisition adds more than 160 trade shows and media titles across various industries to Informa’s portfolio.
Ascential describes itself as an event-led specialist intelligence and advisory firm. Its two main brands operate in specific verticals: Lions in marketing and Money20/20 in fintech.
Half-year results previewed in the offer document showed revenue of approximately $204 million (£158 million), up 15% compared with the same period last year (first half of 2023: $175.4 million (£136.1 million)). Both the marketing and fintech divisions achieved double-digit revenue growth. In its last year’s financial results, the company’s revenue grew 13% and adjusted EBITDA grew 17%.
Ascential is no stranger to trading. Currently, the company is selling its 36.5% stake in Hudson MX. income. In August 2023, it acquired creative and strategic intelligence service Contagious, which operates in the marketing vertical led by Lions.
As Ascential focuses solely on B2B events, Informa describes it as “a pure-play operator of two of the highest quality and prestigious global events”.
Informa’s big plans
The company also reported results for the first half of 2024, which included 11% revenue growth, increased full-year guidance and a stated target of adjusted operating profit of up to $1.29 million (£1 billion).
Informa estimates that integrating Ascential with its operating platform will save approximately $15.5 million (£12 million) through increased efficiencies. It also anticipates significant revenue opportunities through cross-selling and expansion into fast-growing economies where it already has activities.
Informa shared some of its plans for the Ascential brand. The company is considering making Lions the centerpiece of a new Informa Festivals business, which will bring together some of Informa’s most prestigious shows, the Monaco Yacht Show, London Technology Week and Black Hat. It is also considering expanding Money20/20 into the Middle East and Africa, possibly through its joint venture partnership with Tahaluf, the Saudi Arabian Federation of Cyber Security and Programming.
Informa is one of several companies that has struck a deal to share artificial intelligence training content. It struck a three-year deal with Microsoft to allow the US tech giant to access its data and net $10 million in the first year. Informa revealed in its half-year results that its artificial intelligence-related revenue will exceed US$75 million by 2024.
