Informa, a British publishing and events group, has agreed to buy Ascential, owner of the Cannes Lions festival, for £1.16 billion.
The Cannes Lions will become part of a new Informa Festivals business, with plans to expand the Ascential brands into fast-growing markets, including Africa and the Middle East.
The London-based group already owns a range of interntaional business events, including the Fort Lauderdale International Boat Show and World of Concrete, as well as analysis firm Omdia. The deal brings Ascential’s range of B2B properties under the company’s wing; as well as the Cannes Lions festival, Ascential owns the Money20/20 events network, and the marketing intelligence company WARC.
The cash deal will sees Informa pay Ascential investors around 568 pence per share, representing a 53 percent premium to the company’s share price (as of close on Monday). The deal is expected to close during Q4, subject to shareholder approval.
Ascential employs approximately 700 people, and has a market capitalisation of £749 million. Earlier this year, the company sold digital commerce business Flywheel to Omnicom for $900 million. Shares in Ascential jumped 23 percent at reports of Informa’s takeover.
“Informa is a highly respected business, famed for its expertise in B2B events, strong, ethical culture and commitment to innovation,” said Ascential CEO Philip Thomas. “This offer will not only deliver substantial value for our shareholders but also, together with Informa’s international footprint and extensive capabilities in data and analytics, will unlock further growth opportunities for our brands and our people.”
Geographic expansion
The announcement comes alongside Informa’s half-year results; the company increased its full-year guidance to £1 billion operating profit, on the back of 11 percent revenue growth during H1 2024. The company also highlighted Southeast Asia, India, the Middle East and Africa as key growth markets, citing Saudi Arabia as “the fastest growing geography for B2B Events.” Informa plans to push the Money20/20 conference into the Middle East and Africa, in order to capitalise on investor interest in fintech.
Informa has seen steady growth since the pandemic with the events industry back in action, and is currently capitalised around £11.3 billion. The business additionally noted AI partnerships as a key growth driver, which it said contributed 7.5 percent underlying revenue growth during the first six months of 2024.
Last month the company also shuttered two trade publications, Digital TV Europe and Television Business International, as the group merged its Informa Tech business with its US brand Tech Target.
“As the world digitises at pace, our brands, our content and our market positions are becoming more valuable,” said Informa CEO Stephen A. Carter. “This is moving Informa into a faster growth lane for performance, expansion and returns, as demonstrated by our full year target of up to £1 billion of adjusted operating profit and today’s recommended offer for Ascential plc.”
