11th Jan 2024 08:50
(Alliance News) - 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 USD350 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 GBP3.17 billion in revenue for 2023 with underlying growth of approximately 30%, up from GBP2.26 billion the previous year.
It also anticipates around GBP845 million in adjusted operating profit, up from GBP496.3 million in 2022.
In mid-November, Informa said it expected full-year revenue of GBP3.15 billion, and adjusted operating profit of GBP840 million.
Looking ahead, Informa's guidance for the current year targets high single-digit underlying revenue growth. It expects to report between GBP3.43 billion and GBP3.48 billion in revenue, and between GBP945 million and GBP965 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 GBP3 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 GBP1 billion in subscriptions and other recurring booked revenues.
Shares in Informa were down 1.9% at 770.40 pence in London early on Thursday.
By Emma Curzon, Alliance News reporter
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