Publishing, business intelligence and events firm Informa has agreed to buy Cannes Lions owner Ascential for the mammoth sum of £1.2 billion shortly after the conclusion of its 2024 event.
The cash deal will see the British firm significantly extend its events operations and will also include Ascential’s Money 20/20 series of global fintech conferences as well as marketing effectiveness platform WARC.
Following from the deal’s conclusion, Informa has said that it intends to develop and grow both events, expanding them across more sectors with a strategy rooted in its vast reserves of first-party data.
The deal sees Informa pay 568p per share for the Cannes Lions owner, which represents a 53% premium on Monday closing price of 371p per share.
Now in its 70th year, the advertising industry’s flagship event saw a staggering 26,753 awards submissions for 2024, with the number of brands entering rising by 6% and media owners by 31%.
Last year, the Cannes Lions division generated £131 million in revenue, with an adjusted Ebitda of £55.6m. This comprises Cannes Lions (which earned £101 million, WARC (£23m), Contagious (£6m) and Acuity Pricing (£4m).
Subscribe to Marketing Beat for FREE
Sign up here to get the latest marketing news sent straight to your inbox each morning
“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,” Informa CEO, Stephen Carter said.
“Informa has the operating platform and capacity. We have international reach into growth sectors. We have IIRIS, our First Party Data Platform, and we have an understanding of both the FinTech and Marketing sectors. These strengths make us ideally placed to capture the growth and acceleration opportunities available to both Lions and Money20/20.”
Informa has at the same time revealed it first-half results, which indicate healthy underlying operating profit growth of 18.8% and revenue growth of 11%.
The firm claims that this strong performance has enabled it to upwardly revise its expectations for the year, which currently stands at £970 million, but could now rise to £1 billion.
Ascential CEO, Philip Thomas added: “I am extremely proud of all of Ascential’s brands, and the people who work so hard to deliver for them every day. Our two divisions, Lions and Money20/20, have transformed how our customers around the world experience events, and benefit from both digital intelligence and advisory services. The value our businesses bring to their respective industries is clear as is the regard in which they are held by Informa.
“Informa is a highly respected business, famed for its expertise in B2B events, strong, ethical culture and commitment to innovation. 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.”
