Informa (LSE:INF) has agreed to acquire events organiser Clarion from Blackstone for an enterprise value of £2.24 billion, or approximately $3 billion, as the group also begins a formal review of separating its Taylor & Francis academic publishing business.
The transaction values Clarion at 11.1 times expected 2027 EBITDA. Informa said the multiple would fall to approximately nine times after including £50 million of anticipated annual run-rate cost savings.
The company expects the acquisition to increase adjusted diluted earnings per share by a mid-single-digit percentage in 2027 and generate a post-tax return on invested capital of more than 10% by 2029.
Clarion Expected to Generate More Than £575 Million of Revenue
Clarion operates more than 100 business-to-business event brands, including the IFA consumer electronics exhibition in Germany, DSEI defence exhibition and ICE gaming event in Barcelona.
The business is expected to generate more than £575 million of revenue in 2027, with an adjusted operating margin above 30%.
Informa said the combination would create the largest UK-listed B2B events operator, with group revenue exceeding $6 billion and underlying growth of approximately 7%.
In addition to the planned £50 million of annual cost savings, Informa has identified £25 million of additional operating profit from potential revenue synergies by 2029.
Informa Plans £940 Million Equity Raise
Informa intends to fund the acquisition through acquisition financing and an equity raise of approximately £940 million, equivalent to around 9% of its existing share capital.
The equity financing will comprise an institutional placing and a retail offer. Informa will pause its existing share buyback as part of the transaction.
The company expects net debt to EBITDA to remain below three times at year-end and decline to below 2.5 times by the end of 2027.
Completion of the Clarion acquisition is expected late in the fourth quarter, subject to regulatory approvals.
Taylor & Francis Enters Formal Separation Review
Alongside the acquisition, Informa has launched a formal review of a potential separation of Taylor & Francis from the group.
The academic publishing business is approaching $1 billion in annual revenue and is growing at approximately 4% a year. Informa expects to report the outcome of the review alongside its full-year results in March 2027.
The company has not specified whether a separation would take the form of a sale, spin-off or another transaction.
Chief Executive Stephen Carter said: “With Taylor & Francis approaching $1bn in revenue, growing at 4%± and with its Open Research capabilities firmly established, we believe it will now benefit from greater flexibility and freedom through the next phase of its development, as Informa further expands the depth and reach of its B2B portfolio.”
Blackstone acquired Clarion from Providence Equity Partners in 2017 for £600 million.
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