The FTSE 100 publishing and events company, Informa, has agreed to a deal amounting to £3.9bn to takeover UBM, the conference organiser.
Today, shares in both companies were up as the two firms recommended the said offer to their respective shareholders.
For every UBM share, stakeholders will are set to receive 1.083 new Informa shares and 163p. Based on the last closing price of the shares of Informa, this values UBM at £3.9bn.
Today, Informa said that the expanded group would produce a leading business-to-business (B2B) information services group.
“It is clear that the B2B market is moving to operating scale and industry specialisation,” stated the chief executive of Informa, Stephen Carter.
“Our recommended offer for UBM promises to create a leading B2B information services group with the international reach and market capabilities to take full advantage of these trends.”
The firm anticipates realising £60m in annualised cost savings from the integration of UBM, with the union of the businesses expected by the end of this year.
Carter continued: “We will seek to operate with speed and purpose through an accelerated integration plan that unifies management, combines our businesses and adopts a focused approach to industry specialisation.”
Today, shares of Informa were up by 1.6 percent today at 698p. However, the value of shares is still below the 746p price which was used to agree to the offer.
Meanwhile, the share price of UBM was up by 4.3 percent to 907p, having surged by almost 100p in a day when the offer of Informa was announced.