Informa To Acquire Penton Information Services - Quick Facts

(RTTNews) - Informa PLC (INFMF.PK, INF.L) announced it has reached agreement with MidOcean Partners and Wasserstein & Co to acquire the entire issued and outstanding capital stock of Penton, an independent US-based Exhibitions and Professional Information Services group for 1.18 billion pounds comprising: cash consideration of 1.105 billion pounds, to be funded through a combination of debt and equity, including a fully underwritten Rights Issue of 715 million pounds; and an equity consideration of 76 million pounds with a holding period of up to one year. On completion, the enlarged Informa Group will have a significant presence across the US, accounting for 47% of annual pro-forma revenues.

Informa said the combination with Penton creates opportunities to generate valuable net operating synergies, estimated at an annualised 14 million pounds in the second full year of ownership in 2018. The estimated integration and other exceptional costs associated with realising these synergies is estimated at 18 million pounds in the period through to 31 December 2018. Informa expects the acquisition will deliver attractive earnings accretion in the first full financial year (ending 31 December 2017) following completion.

Informa said Patrick Martell, CEO of Business Intelligence, will work in transition with the current CEO of Penton, David Kieselstein. This transition partnership will see Patrick become CEO of Penton.