London, 17th January: Earlier this week, London-listed UBM plc and Informa plc, announced that they were engaged in serious acquisition discussions. Within 24 hours, it was announced that Informa would acquire UBM in a US$5.2 billion deal. The deal is still pending approval from the two boards and relevant regulators. Together, the two companies will become the world’s largest exhibition organiser with a global market share of approximately 6%.
Under the terms of the proposed acquisition, UBM shareholders will receive 1.083 Informa shares and 163 pence in cash for each share of UBM. This is based on the 30-day volume-weighted average share prices as of 15th January 2018 of both companies, and the closing prices on 15th January 2018 of both companies. In total, this price represents a premium of about 30%.
In terms of geographic coverage and portfolios, this deal makes good sense. UBM is strong in Asia, while Informa has a small portfolio. Informa is strong in the Middle East, where UBM has limited activity. Both companies have large U.S. portfolios and that will likely generate the most integration work for the two companies.
Overall in Asia, through UBM Asia, the group organises more than 230 exhibitions and conferences each year. Major events are held in China, Hong Kong, India, Indonesia, Japan, Malaysia, Singapore, Thailand in Asia as well as selected shows in non-Asian locations such as in cities in Brazil, Russia and Turkey. UBM Asia’s revenues in 2016 were US$486 million.
On the other side, Inform has a small Asian business including its flagship Asian event, China Beauty Expo in Shanghai. They also organise Chengdu China Building and Decoration Materials Exposition (CCBD) and InterHealth Expo (IHE Expo) in Guangzhou.