The British event company Informa is in advanced negotiations to acquire the publicly listed competitor Ascential, which organizes global conferences such as the Cannes Lions advertising festival, for more than 1.1 billion pounds.
The event industry has strongly recovered from the pandemic and now exceeds pre-crisis levels, as companies are returning in large numbers to in-person events and award ceremonies. In this booming market, Ascential announced on Tuesday afternoon that it had received a conditional proposal from Informa regarding a possible cash offer of 568 pence per share, amounting to more than 1.1 billion pounds.
Ascential, which confirmed an earlier Financial Times report about the talks, stated that the board is "inclined to recommend the proposal." The acquisition could be announced as early as Wednesday when Informa, the world's largest event organizer, releases its latest financial results, according to two people familiar with the discussions. However, one person cautioned that the deal has not yet been signed and could still fall through. Informa declined to comment.
Ascential has recently simplified its business, now focusing primarily on events, with additional revenue from subscription and consulting services. This has facilitated the acquisition by Informa, which is already the world's largest event organizer. Ascential, which employs around 700 people, announced in March that it would return £850 million to shareholders after selling its Digital Commerce and trend forecasting divisions for £1.4 billion. On Tuesday, Ascential was traded at 367 pence, corresponding to a market capitalization of £749 million. The shares jumped 20 percent on the news of the talks and closed at 446.8 pence.
The shares of Informa have risen by about 14 percent in the past year, giving the company a market capitalization of 11.3 billion pounds on Tuesday afternoon. Since the low point during the pandemic, which brought the global events industry to a standstill, the company has been growing every quarter. Under the leadership of Stephen Carter, the former CEO of the communications regulator Ofcom, Informa has expanded its business through acquisitions, including the acquisition of the events group Tarsus from Charterhouse Capital Partners for 940 million dollars in March last year.
In the same month, Hyve was acquired by the private equity group Providence Equity Partners for $580 million, and the rival Cvent by Blackstone for $4.6 billion, indicating the extent of investor interest in the growing events industry. Ascential is one of the few remaining event companies of significant size. Analysts at Peel Hunt described Ascential's events as "prestigious with sustainable growth potential that should warrant a premium valuation.
Peel Hunt described Cannes Lions as the "Oscars" of the advertising industry. Ascential also owns Money20/20, a series of major events for the fintech sector that take place in Asia in April, in Europe in June, and in the USA in October. Ascential held a two-day capital markets event at Cannes Lions this year, highlighting potential for future growth, including M&A opportunities.
Peel Hunt said: "The company has divested many less prestigious events over the years. This allows it to demand premium prices for participants and secure large sponsorship deals, creating strong competitive advantages.
