UK-based Informa is set to acquire US-based Penton in a deal worth US$1.56bn from private equity owners MidOcean Partners and Wasserstein & Co.
The transaction is subject to approval by Informa shareholders, customary regulatory and closing conditions and is expected to close in the fourth quarter of 2016.
“Today, we are announcing continued progress on our Growth Acceleration Plan with the proposed addition of Penton Information Services,” said Stephen Carter, Informa Group CEO. “This combination will further strengthen our capabilities in Global Exhibitions and Business Intelligence and extend our US presence.”
He added: “The opportunity created through the combination of Informa and Penton balances our portfolio and increases our scale and reach, further improving the predictability and sustainability of our growth performance and cash generation.”
Some of Penton’s shows include Natural Products Expos West and East, WasteExpo and the massive farm shows – Farm Progress and Husker Harvest Days.
Following the acquisition, Informa’s trade show portfolio will be one of the three largest in the US, with more than 70 exhibitions annually, including 16 that were on TSNN’s Top 250 trade show list.
This continues its rapid growth during the last six years from a business reporting revenues of less than $100m in 2009 to one delivering pro-forma revenue of more than $500m.
The enlarged Informa Group will have a significant presence across the US, accounting for 47% of annual pro-forma revenues, according to company officials.