Providence Equity Partners Acquires U.K. Event Organizer Hyve Group for $579 Million

March 16, 2023

London, U.K.-based event organizer Hyve Group has been sold to media-focused equity investment firm Providence Equity Partners, based in Providence, R.I.  

In a joint statement, Providence Equity Partners said it had agreed to a buyout deal paying $1.30 (£1.08) in cash for each Hyve share — a bid that gives the international event organizer an equity value of more than $386 million (£320 million) and an enterprise value of $579 million (£481 million). Hyve had previously rejected two offers from Providence worth $1.22 (£1.01) and $1.26 (£1.05) per share. 

This is the third largest acquisition deal to hit the trade show and events industry in the last week alone, right on the heels of Blackstone’s March 14 announcement that it had acquired Cvent for $4.6 billion and Informa’s acquisition of Tarsus Group for $940 million on March 9. 

Shares in Hyve, which currently organizes 33 trade shows and events across 11 countries and employs more than 600 people across 10 offices, jumped more than 12% to $1.35 (£1.12) each in early trading at the news.

“The board believes the offer represents value for shareholders and that Providence, with their knowledge of the sector and belief in the business and management team, will be a good partner for Hyve,” said Richard Last, chair of Hyve. “I would like to take this opportunity to recognize the exceptional contribution of our people, whose commitment and hard work have fundamentally changed Hyve for the better and place us at the forefront of our industry.” 

Hyve shares were worth $7.36 (£6.10) in Jan. 2020 before COVID-19 lockdowns and travel restrictions caused sales to plummet. After that, the company pivoted to holding some events virtually, such as the Pure London fashion trade show. The international organizer took a further hit a year ago when it made the decision to pull out of Russia following Moscow’s invasion of Ukraine. It has also sold its Ukrainian and Turkish businesses.

Hyve organizes events in 11 countries under brands including Shoptalk, Spring Fair, Bett, Mining Indaba and the recently acquired Fintech Meetup. The organizer was co-founded in 1991 under the name ITE Group by CEO Mark Shashoua, who left in 1999 and then returned again as CEO in 2017 to transform the business from a sprawling portfolio to one focused on market-leading events.

Providence Equity specializes in media, communications, education and technology investments, including the U.K.’s Ambassador Theatre Group and U.S. firms Warner Music Group and Western Wireless Corporation (now AT&T Corp). It has also invested in the U.K. events sector, having been the majority shareholder of CloserStill Media since 2018 and previously investing in Clarion Events and GLM.

“Providence believes that Hyve has established a strong platform for future organic and inorganic growth underpinned by Hyve's portfolio of high-quality global brands and market-leading events focused on developed markets and in growing sectors,” said Providence Equity officials in a statement. 

The firm added that it would support Hyve by providing the capital for expansion and acquisitions to help it realize its “full growth potential.” 

Hyve made revenues of $148 million (£122 million) last year, up from more than $26 million (£21.8 million) in 2021, and a pre-tax profit of almost $14 million (£11.5 million). The company said a number of events had outperformed pre-pandemic levels.

The Hyve directors and a major shareholder Strategic Value Partners, which holds almost 17% of Hyve, have committed to voting in favor of the takeover. If shareholders approve, the deal is expected to be completed in May.

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Partner Voices
Less than six months ago, Lisa Messina joined the Las Vegas Convention and Visitors Authority (LVCVA) as the first-ever chief sales officer after leading the sales team at Caesars Entertainment. A 12-year Las Vegas resident, Messina is a graduate of Cornell University’s School of Hotel Administration and serves on MPI International’s board of directors. TSNN had a chance to catch up with this dynamic leader and talk to her about her vision for the new role, current shifts in the trade show industry, creating more diversity and equity within the organization, and advice to future female leaders. Lisa Messina, Chief Sales Officer, LVCVA With Las Vegas becoming The Greatest Arena on EarthTM, what are some of the things you’re most excited about in your role? Our team was at The Big Game’s handoff ceremony earlier this month, and I couldn’t help but think, “We’re going to crush it next year!”  These high-profile events and venues not only drive excitement, but also provide unmatched opportunities for event planners. Allegiant Stadium hosts events from 10 to 65,000 people and offers on-field experiences. Formula 1 Grand Prix will take place in Las Vegas in November, after the year-one F1 race, the four-story paddock building will be available for buyouts and will also offer daily ride-along experiences that will be available for groups. And, of course, the MSG Sphere officially announced that it will open in September, ahead of schedule, with a U2 residency. It’s going to be the most technologically advanced venue as far as lighting, sound, feel, and even scent, and it will be available for buyouts and next-level sponsorships inside and outside. There’s no ceiling to what you can do when you’re doing events in Las Vegas.  Allegiant Stadium As the trade show and convention business returns to the pre-pandemic levels, what shifts are you noticing and how do you think they will impact the industry going forward? Our trade show organizers are very focused on driving customer experience. Most of our organizers are reporting stronger exhibitor numbers and increased numbers of new exhibitors, with trade shows proving to be almost or above 2019 levels. Now our organizers are really doubling down on driving attendance and focusing on the data to provide that individualized, customized experience to help attendees meet their goals and get the best value. Some companies continue to be cautiously optimistic with their organizational spend when it comes to sending attendees, but I think it will continue to improve. As the U.S. Travel Association makes more progress on the U.S. visa situation, we also expect a growing influx of international attendees. What are some innovative ways the LVCVA helps trade show and convention organizers deliver the most value for their events? We focus on customer experience in the same way that trade show organizers are thinking about it. We got rave reviews with the West Hall Expansion of the Las Vegas Convention Center (LVCC), so over the next two years, we will be renovating the North and the Central halls, which will include not just the same look and feel, but also the digital experiences that can be leveraged for branding and sponsorship opportunities.  Vegas Loop, the underground transportation system designed by The Boring Company, is also a way we have enhanced the customer experience. Vegas Loop at the LVCC has transported more than 900,000 convention attendees across the campus since its 2021 launch. Last summer, Resorts World and The Boring Company opened the first resort stop at the Resorts World Las Vegas , with plans to expand throughout the resort corridor, including downtown Las Vegas, Allegiant Stadium and Harry Reid International Airport. The LVCVA also purchased the Las Vegas Monorail in 2020, the 3.9-mile-long elevated transportation system that connects eight resorts directly to the convention center campus. This is the only rail system in the world that integrates fares directly into show badges and registration. For trade show organizers, these transportation options mean saving time, money and effort when it comes to moving groups from the hotels to LVCC and around the city. Also, the more we can focus on building the infrastructure around the convention center, the more it supports the customer experience and ultimately supports our trade show organizers. Scheduled to debut in Q4, Fontainebleau Las Vegas will offer 3,700 hotel rooms and 550,000 square feet of meeting and convention space next to LVCC.  What are some of the plans for advancing DEI (diversity, equity and inclusion) within your organization? We’re currently partnering with instead of working with a leading consulting firm, to lay the foundation and create a solid DEI plan and be the leader when it comes to DEI initiatives. The heart of that journey with the consulting firm is also talking to our customers about their strategic approaches to DEI and driving innovation in this space.  What are your favorite ways to recharge? My husband and I have an RV and we’re outdoorsy people. So, while we have over 150,000 world-class hotel rooms and renowned restaurants right outside our doorstep, one of my favorite things to do is get out to Red Rock Canyon, the Valley of Fire, and Lake Mead. Five of the top national parks are within a three-hour drive from Las Vegas, so there’s a lot you can do. We love balancing the energy of Las Vegas with nature, and we’re noticing that a lot of attendees add activities off the Strip when they come here.  Valley of Fire What advice would you give to women following leadership paths in destination marketing? I think it’s about being laser-focused on what you want to accomplish; building a team around you that lifts you and helps you achieve your goals; and being humble and realizing that you do it as a group. No one gets this done alone. Thankfully, there are a lot of women in leadership in this organization, in our customers’ organizations, and in this city that we can be really proud of. We’re a formidable force that is making things happen.   This interview has been edited and condensed. This article is exclusively sponsored by the Las Vegas Convention & Visitors Authority. For more information, visit HERE.