Informa, the international event organiser, knowledge services and business intelligence group, 10 February, announced it is to divest its largest business within its Informa Intelligence division to private equity firm Warburg Pincus for £1.9bn (US$2.58bn). The move is one of two new significant steps in its 2021-2024 Growth Acceleration Plan II (‘GAP II’). The sale is expected to be completed by June.
The Group announced it was also, separately, commencing a share buyback.
Stephen A. Carter (pictured), Group chief executive, Informa PLC, said: “Like GAP I, our GAP II programme is ambitious for growth, value creation and shareholder returns. Since announcing the intention to divest our Informa Intelligence portfolio, we have received significant interest in its high-performing brand portfolio, leading to today’s binding agreement for Pharma Intelligence, which reflects the quality and value created in this business, as well as its significant future potential.”
He added: “Our capital allocation discipline, combined with the pace and scale of today’s agreement, allows us to commence our share buyback programme with immediate effect. It also enables us to strengthen the balance sheet, generate funds for further growth investment in our two leadership businesses and retain a minority position in Pharma Intelligence to benefit from its future growth.”
GAP II is a four-year programme designed to create a more focused, higher growth business for Informa.
As part of GAP II, the Group announced its intention to focus investment on the two markets where it has leading brands and leadership positions of global scale, with attractive opportunities for further growth and expansion: Academic Markets & Knowledge Services (Taylor & Francis) and B2B Markets & Digital Services (Informa Markets, Informa Connect, Informa Tech).
Informa will report its 2021 full-year results on 15 March 2022. Ahead of this, the Group can confirm that it expects to report trading in 2021 in line with guidance of £1.8bn Group Revenue and £375m of Adjusted Operating Profit.
The Group said trading in 2022 has started confidently in its Academic Markets and B2B Markets businesses.
Unlike the previous two years, Informa said it had a full physical events calendar scheduled through the first quarter in North America and the Middle East, with trading in China scheduled to start in mid-March after the annual holiday period.
“To date, exhibitor and attendee participation levels and forward bookings have been robust, with our brands in Construction & Real Estate (World of Concrete, TISE), Healthcare (Arab Health, Medlab), Luxury & Lifestyle (Miami International Boat Show) and Technology (LEAP) all performing in line or ahead of plan,” the Group statement said.
Some analysts believe that Informa's finance and maritime intelligence groups – which have a combined revenue/ profit of £183m/£50m – will also be sold and could raise up to £800m.
