Providence Equity Partners Acquires U.K. Event Organizer Hyve Group for $579 Million

March 16, 2023

London, U.K.-based event organizer Hyve Group has been sold to media-focused equity investment firm Providence Equity Partners, based in Providence, R.I.  

In a joint statement, Providence Equity Partners said it had agreed to a buyout deal paying $1.30 (£1.08) in cash for each Hyve share — a bid that gives the international event organizer an equity value of more than $386 million (£320 million) and an enterprise value of $579 million (£481 million). Hyve had previously rejected two offers from Providence worth $1.22 (£1.01) and $1.26 (£1.05) per share. 

This is the third largest acquisition deal to hit the trade show and events industry in the last week alone, right on the heels of Blackstone’s March 14 announcement that it had acquired Cvent for $4.6 billion and Informa’s acquisition of Tarsus Group for $940 million on March 9. 

Shares in Hyve, which currently organizes 33 trade shows and events across 11 countries and employs more than 600 people across 10 offices, jumped more than 12% to $1.35 (£1.12) each in early trading at the news.

“The board believes the offer represents value for shareholders and that Providence, with their knowledge of the sector and belief in the business and management team, will be a good partner for Hyve,” said Richard Last, chair of Hyve. “I would like to take this opportunity to recognize the exceptional contribution of our people, whose commitment and hard work have fundamentally changed Hyve for the better and place us at the forefront of our industry.” 

Hyve shares were worth $7.36 (£6.10) in Jan. 2020 before COVID-19 lockdowns and travel restrictions caused sales to plummet. After that, the company pivoted to holding some events virtually, such as the Pure London fashion trade show. The international organizer took a further hit a year ago when it made the decision to pull out of Russia following Moscow’s invasion of Ukraine. It has also sold its Ukrainian and Turkish businesses.

Hyve organizes events in 11 countries under brands including Shoptalk, Spring Fair, Bett, Mining Indaba and the recently acquired Fintech Meetup. The organizer was co-founded in 1991 under the name ITE Group by CEO Mark Shashoua, who left in 1999 and then returned again as CEO in 2017 to transform the business from a sprawling portfolio to one focused on market-leading events.

Providence Equity specializes in media, communications, education and technology investments, including the U.K.’s Ambassador Theatre Group and U.S. firms Warner Music Group and Western Wireless Corporation (now AT&T Corp). It has also invested in the U.K. events sector, having been the majority shareholder of CloserStill Media since 2018 and previously investing in Clarion Events and GLM.

“Providence believes that Hyve has established a strong platform for future organic and inorganic growth underpinned by Hyve's portfolio of high-quality global brands and market-leading events focused on developed markets and in growing sectors,” said Providence Equity officials in a statement. 

The firm added that it would support Hyve by providing the capital for expansion and acquisitions to help it realize its “full growth potential.” 

Hyve made revenues of $148 million (£122 million) last year, up from more than $26 million (£21.8 million) in 2021, and a pre-tax profit of almost $14 million (£11.5 million). The company said a number of events had outperformed pre-pandemic levels.

The Hyve directors and a major shareholder Strategic Value Partners, which holds almost 17% of Hyve, have committed to voting in favor of the takeover. If shareholders approve, the deal is expected to be completed in May.

Don’t miss any event-related news: Sign up for our weekly e-newsletter HERE, listen to our latest podcast HERE and engage with us on Twitter, Facebook and LinkedIn!


 

Add new comment

Partner Voices
HERE, hosting responsible meetings and caring for our communities are top priorities. Through its 'Focused on What Matters: Embracing Humanity and Protecting the Planet' philosophy, MGM Resorts commits to creating a more sustainable future, while striving to make an impact in the lives of employees, guests, and the communities in which it operates. Water Stewardship Efforts MGM Resorts understands the importance of using water efficiently, especially in the desert destination of Las Vegas. Conserving water has always been part of the mission, but MGM Resorts has expanded its ambition into water stewardship. In 2022, MGM Resorts President and CEO Bill Hornbuckle signed the CEO Water Mandate—a UN Global Compact initiative mobilizing business leaders to advance water stewardship. MGM Resorts International was the first gaming company to take this important step. MGM Resorts replaced 200,000 square feet of real grass with drought-tolerant landscaping in Las Vegas. MGM Resorts pledges to reduce water withdrawal intensity by 33% by 2025 and by 35% by 2030. From 2007-2021, use of more than 5.6 billion gallons of water was avoided because of conservation efforts. Caring for One Another MGM Resorts’ Food Donations Program collects and preserves unserved food from conventions held at MGM Resorts properties, then safely donates to food insecure people in the community. Since the program’s launch in 2016, more than 3.7 million meals toward a 2025 goal of 5 million meals have been donated into the community. Donations include: Unserved perishable prepared foods from events Perishable unprepared food from MGM Resorts’ kitchens Nonperishable food items from minibars and warehouses The collaboration with Southern Nevada’s primary food bank, Three Square, has developed the infrastructure needed to safely collect, transport, and store food from MGM Resorts properties in Las Vegas, reducing food waste while serving the community. Fostering Diversity and Inclusion To MGM Resorts, a diverse and talented workforce is essential to success. By cultivating innovative strategies that consider multiple perspectives and viewpoints, the company creates an inclusive workplace culture that benefits its employees and community. MGM Resorts takes pride in being a welcoming home for veterans, individuals with disabilities, people from diverse backgrounds, LGBTQ+ community members, and more. This commitment to inclusion is reflected in the company's recruitment and hiring practices and its social responsibility initiatives. From the workplace to the community, MGM Resorts' commitment to diversity, equity and inclusion remains unwavering, and its efforts continue to create a more equitable and sustainable world for all. MGM Resorts understands its responsibility to contribute to the social and economic progress of the communities in which it operates. HERE, we embrace humanity.