Informa Makes $5.5 Billion Formal Offer for UBM
Informa has made it official, formally offering $5.5 billion in a cash-stock deal for UBM, creating the largest exhibition company in the world.
"It is clear that the B2B market is moving to operating scale and industry specialisation,” said Stephen A. Carter, Informa’s CEO.
He added, “Our recommended offer for UBM promises to create a leading B2B information services group with the international reach and market capabilities to take full advantage of these trends."
Under the terms of the offer, UBM shareholders will receive 1.083 Informa shares for each UBM share and $2.26 in cash.
Carter said that shareholders would see strong growth and continued value from the merger.
“We will seek to operate with speed and purpose through an Accelerated Integration Plan that unifies management, combines our businesses and adopts a focused approach to Industry Specialisation,” he added.
Carter said, “This will ensure the Enlarged Group enters 2019 as a single business, with positive growth momentum and well-placed to deliver at least £60 million ($84 million) of annual recurring operating synergies."
The offer will result in Informa Shareholders owning approximately 65.5 percent of the larger company and UBM Shareholders owning approximately 34.5 percent.
The larger company will employ around 11,000 colleagues (approximately 4,500 in the Americas, 2,500 in Asia, 500 in EMEA and 3,500 in the UK), and will be a leading exhibitions business in the key growth markets of China and the U.S., further accelerating the opportunities that both Informa and UBM have been pursuing, according to company officials.
Shows under the new, larger group umbrella span from World of Concrete to MAGIC Market Week to WasteExpo to the Game Developers Conference.
Based on results to 31 December 2016, the Enlarged Group has pro-forma revenues of around £2.6 billion and adjusted operating profit of around £0.8 billion.
Patrick Martell, Informa’s CEO of business intelligence, will take over from UBM CEO Tim Cobbold, to lead UBM through the integration process until end of 2018.
Martell will report to Informa CEO Stephen Carter, who will be CEO of the combined company.
Martell will work closely with Charlie McCurdy, CEO of Informa's Global Exhibitions Division, Andrew Mullins, CEO of Informa's Knowledge & Networking Division, and senior operating management from UBM to develop the combined company’s operating model and management structure.
Current Informa Chairman Derek Mapp will be chairman of the combined company, and UBM Chairman Greg Lock will become deputy chairman.