Informa and IHS Markit agree information exchange deal

The deal, which fits with Informa’s progressive portfolio management (PPM) strategy, will add scale and capability to Informa Tech.

The PPM programme focuses on brands and customer markets with the greatest opportunities for growth and expansion.

It strengthens Informa’s market position in telecoms, media and technology (TMT), as well as aligning its specialist information brands within the agribusiness intelligence portfolio.

The expansion of Informa Tech includes a portfolio of B2B brands offering specialist research and data to customers through a range of subscription products and consulting. It extends Informa’s international reach through its strong presence in Asia and North America, as well as its position in key sub-sectors of the TMT market.

The enlarged Informa Tech will have annual revenues of around $350m.

In a joint statement to the London Stock Exchange, Lance Uggla, CEO of IHS Markit and Stephen Carter, group chief executive of Informa said: “This agreement is very positive for both IHS Markit and Informa, increasing the focus of each company on core markets where it has particular strengths and a long-term commitment to invest and grow." 

The agreement involves two separate transactions that value the two businesses at equivalent EBITDA multiples, with Informa contributing an additional $30m in cash to IHS Markit to reflect the larger EBITDA contribution from the IHS Markit business.

The transactions are expected to close in July 2019 and are subject to customary closing conditions, including US regulatory approval.