Informa is moving forward with the acquisition of Clarion Events for £2.24 billion from Blackstone. This purchase aims to enhance Informa's footprint in rapidly growing sectors, notably gaming. Blackstone originally acquired Clarion in 2017 from Providence Equity Partners and successfully navigated the challenges posed by the pandemic, during which live events faced substantial restrictions.
The announcement was made on Tuesday, with the deal expected to finalize in the fourth quarter of 2026, valuing Clarion at 11.1 times its anticipated EBITDA for 2027. Informa noted that it anticipates revenue from Clarion to exceed £575 million ($761.6 million) in 2027. This portfolio includes key assets from Clarion's WorldGaming division, featuring major events like ICE and iGB L!VE, along with other leading brands across various sectors such as defense and electronics.
Informa's CEO Stephen Carter stated this acquisition will help the company regain its ambition to be the world's foremost B2B live events company. Along with this purchase, Informa will be spinning off its academic unit, Taylor & Francis. Carter emphasized the strategy laid out in 2013, which focused on building a significant presence in the B2B live events segment. He expressed that Clarion’s integration would enhance their existing portfolio, particularly in gaming, which is a key market segment.
Clarion's managing director for WorldGaming, Alex Pratt, welcomed the acquisition, highlighting that Informa's advanced data capabilities and global reach are essential for expanding their ecosystem.
Following the acquisition, Informa's B2B live events sector is projected to generate over £4.2 billion in revenue through approximately 1,000 specialized brands. The deal is expected to provide geographical advantages in North America, Asia, and Europe, particularly in regions like IMEA (India, Middle East, and Africa), where Clarion had limited presence. Informa conveyed that combining Clarion's renowned brands with its existing portfolio would lead to significant revenue opportunities and establish their B2B Live Events business as a strong performer with over 7% underlying growth.
Informa plans to achieve around £50 million in annual operating synergies from this acquisition through operational efficiencies, along with an expected £25 million in operating profit boosts by 2029 due to additional revenue streams.
Lisa Hannant, who currently leads Clarion Events, will continue in that role and join Informa's executive leadership. She remarked that this acquisition marks a pivotal new phase for the business, recognizing the achievements of their teams and the quality of their brands as reasons why Informa chose to invest.
The acquisition will be funded entirely through cash, utilizing dedicated financing and net proceeds from an equity placing and retail offer, totaling approximately £940 million. Despite the substantial nature of the deal, Informa anticipates keeping its pro forma net debt below three times EBITDA by the end of 2026, reducing it to below 2.5 times by the end of 2027. The company will pause its current share buyback program to facilitate the acquisition.
Informa forecasts that this move will uplift adjusted diluted earnings per share by a mid-single-digit percentage in 2027 and achieve a double-digit post-tax return on invested capital within three years.
