Informa PLC on Thursday reported strong revenue growth in its latest year, and said its Tech digital businesses will combine with US-listed TechTarget Inc.
The London-based business information and events company announced that Informa Tech’s digital business will merge with Newton, Massachusetts-based TechTarget Inc to create ‘market leader’ New TechTarget.
‘Today we significantly strengthen Informa’s position in the growing [business-to-business] Digital Services market, creating a platform to serve B2B customers at scale digitally, as we already do in Live & On-Demand B2B Events,’ commented Chief Executive Stephen Carter.
To consolidate New TechTarget’s revenue, profit and cashflow, Informa will also contribute approximately $350 million in cash for a 57% ownership position in the company.
Informa Tech CEO Gary Nugent will be appointed as the CEO of New TechTarget.
Also on Thursday, Informa said it expects to report £3.17 billion in revenue for 2023 with underlying growth of approximately 30%, up from £2.26 billion the previous year.
It also anticipates around £845 million in adjusted operating profit, up from £496.3 million in 2022.
In mid-November, Informa said it expected full-year revenue of £3.15 billion, and adjusted operating profit of £840 million.
Looking ahead, Informa’s guidance for the current year targets high single-digit underlying revenue growth. It expects to report between £3.43 billion and £3.48 billion in revenue, and between £945 million and £965 million in adjusted operating profit.
However, Informa said this guidance excludes any effect of the proposed combination with TechTarget. Following the merger’s completion in the second half of 2024, Informa expects annual B2B revenue to rise to approximately £3 billion.
Among its reasons for optimism in 2024, Informa noted its ‘strength in the US and rapidly expanding economies in the Middle East, China and Asia’, and visibility of over £1 billion in subscriptions and other recurring booked revenues.
Shares in Informa were down 1.9% at 770.40 pence in London early on Thursday.
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