LONDON (dpa-AFX) - Informa plc (INFMF.PK) Wednesday said it has agreed to acquire Ascential plc. for about 1.2 billion pounds in cash.
The purchase price of 568p per share represents 53 percent premium to the closing price of 371 p per Ascential share on July 22, the last trading day before the commencement of the offer.
'Informa expects significant revenue opportunities to arise through combination, including through cross selling and expansion into fast growth economies where Informa has an established position. The offer implies a low double-digit multiple of enterprise value to Ascential's estimated EBITDA in 2025,' the company said in a statement.
Informa also anticipated nearly 12 million pounds of annual cost savings and efficiency improvements by combining Ascential into Informa's operating platform.
The companies plan to implement the deal by way of a court-sanctioned scheme of arrangement. The terms also say that if the Hudson Disposal completes prior to the date of the sanction hearing, the sale proceeds will be returned to Ascential shareholders by way of a cash dividend. Hudson disposal is Ascential's arm's length divestment of 89.7 per cent interest in Hudson MX.
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