Informa, UBM Deal Valued at $5.3 Billion; Formal Offer Due Feb. 13
January 21, 2018
Two of the largest global trade show organizers – Informa and UBM – unveiled last week they were in talks to possibly merge in a deal valued at $5.3 billion.
The merger would create a trade show juggernaut, easily taking the No. 1 spot as the largest global organizer worldwide.
A decade after a proposed deal in which UBM attempted to buy Informa fell apart, the combined companies would give Informa scale and specialization in events.
"It is clear that the B2B Market is moving to Operating Scale and Industry Specialisation,” said Stephen A. Carter, Informa’s CEO.
He added, “The Combined Group will have the reach and market capabilities to take full advantage of these trends."
Shareholders will receive 1.083 Informa shares for each UBM share and $2.26 in cash, valuing UBM at $13.30 a share, a 30-percent premium to the Jan. 15 closing price, Informa said.
The deal terms were announced Jan. 17 and Informa shares were down 10 percent to $9.79 per share, while UBM shares increased 10 percent to $12.22 per share.
Informa has until Feb. 13 to make a firm offer.
A detailed statement said: “The Combined Group will build on the respective strengths of Informa and UBM to meet growing customer demands for Brands and partners with international reach, specialist industry knowledge and an increasingly wide range of B2B services incorporating face¬to-face platforms and events, data analytics, targeted marketing services and trusted, reliable intelligence and research.”
Informa’s portfolio includes shows such as World of Concrete, Natural Products Expos East and West and Greenbuild in the U.S., while UBM owns Magic Market Week, the massive biennial fashion shows, as well as Black Hat Conference and Game Developers Conference.
The combined group would be owned 65.5 percent by Informa shareholders and 34.5 by UBM shareholders.
"This is the right moment to combine our strengths, enabling us to capture fully the long-term growth opportunities in this attractive market, bringing benefits for customers and colleagues, as well as generating significant value for shareholders,” Carter said.
Partner Voices
MGM Resorts is committed to fostering an inclusive and diverse culture, not just among employees and guests but also within its supply chain. The company prioritizes procuring goods and services from businesses owned by minorities, women, veterans, people with disabilities, LGBTQ individuals and those facing economic disadvantages. This commitment is integral to MGM Resorts' global procurement strategy.
Through its voluntary supplier diversity program, MGM Resorts actively identifies and connects certified diverse-owned suppliers to opportunities within its supply chain. The company is on track to spend at least 15% of its biddable procurement with diverse-owned businesses by 2025, demonstrating that supplier diversity is not only a social responsibility but also a strategic business imperative.
Supplier diversity isn’t just the right thing to do – it’s good for business. A diverse supply chain allows access to a broader range of perspectives and experience, helping to drive innovation, entrepreneurship and resilience, while strengthening communities. At MGM Resorts, engaging diverse suppliers ensures best-in-class experiences for guests and clients. Supplier diversity ensures a more resilient supply chain while supporting economic development in the communities in which it operates.
The impact of MGM Resorts' supplier diversity initiatives is significant. In 2023, these efforts supported over 3,500 jobs across more than 30 states, contributed over $214 million in income for diverse-owned businesses and generated more than $62 million in tax revenue. The story extends beyond the numbers – it reflects the tangible benefits brought to small and diverse-owned businesses, fostering economic empowerment in their communities.
MGM Resorts also supports the development and business skills of diverse-owned businesses through investment, mentorship and education. Through the MGM Resorts Supplier Diversity Mentorship Program, the company identifies, mentors and develops diverse-owned businesses to fill its future pipeline, while providing businesses with tools and resources to empower and uplift. Since 2017, the program has successfully graduated 105 diverse-owned businesses and is on track to achieve its goal of 150 graduates by 2025.
MGM Resorts’ commitment to supplier diversity not only enhances its business operations but also plays a crucial role in uplifting communities and fostering economic development. This approach reinforces the idea that diversity is a powerful driver of innovation and resilience, benefiting both the company and the wider community.
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