Acquisition trail runs hot for three key event organisers
A March trio of mega deals among global exhibition sector big beasts illustrate the strength of the industry ’ s comeback and its attractiveness to Private Equity and investors . Paul Colston breaks it down
T he largest exhibitions group in the world , Informa strengthened its presence in growing regions and markets significantly with the acquisition of B2B events group Tarsus from Charterhouse Capital Partners in a deal valued at $ 940m and announced 9 March . The deal was put together in just five weeks . Less than a week later Hyve Group announced it was selling to private equity group Providence Equity Partners in a $ 580m deal . And that news came just a day after events and hospitality technology provider Cvent had been sold to Blackstone in a mammoth $ 4.6bn deal .
Informa ’ s swoop for Tarsus Stephen Carter , group chief executive , Informa , said his team had long admired the Tarsus business “ which , like Informa , has been built around major brands in attractive , specialist B2B markets in the growing regions of Asia , China , the Middle East and the Americas ”.
Douglas Emslie , chief executive of Tarsus Group returned the compliment saying he , “ could not think of a better partner than Informa to lead our brands and colleagues through the next phase of growth and expansion ”.
“ They ’ ve always wanted to buy us . I always thought they would be the best home for us ,” Emslie told Mash Media . “ The cultures are a good match , geographically we ’ ve got good footprints .”
Emslie also predicted data and digital would be the future of the business under Informa control .
Both companies are seeing a strong return to the market for Live and On- Demand B2B Events in 2023 , although the markets might have expected – and Emslie himself certainly admits to expecting it – a move for Tarsus likely 18 months to two years down the line . The ‘ pre-emptive strike ’, as it were , was certainly a surprise , but can be seen as a confident stake on the market continuing to come back fast , particularly in China .
The combination of Tarsus with Informa ’ s Live and On-Demand Events portfolio brings together market-leading brands in attractive B2B markets . There is a strong commercial and cultural fit between the two businesses , creating reach and depth in Asia , the Middle East and the Americas .
There is strong portfolio alignment in Healthcare ( Health Connect Partners ), Beauty & Aesthetics ( A4M , LiVDerm ), Packaging ( Labelexpo ), Infrastructure ( Intertraffic ), Aviation ( Dubai Airshow ), Fashion ( SIUF , OFFPRICE ) and Sustainability ( Intersolar , Mexico WindPower ). Informa projects annualised
Doug Emslie , CEO Tarsus Group
Mark Shashoua , CEO Hyve Group
Reggie Aggarwal , CEO and founder , Cvent
combination benefits of c .$ 20m through efficiencies in procurement , real estate , technology , event contracts and other areas .
Other benefits of the deal outlined by Informa include its first party data engine , IIRIS ( 15m + KEMA ), which is set to directly benefit from Tarsus c . 515k attendees , 8,350 + exhibitors and estimated audience ( KEMA ) of c . 1.4m across its top ten exhibition brands .
The initial Tarsus enterprise value of $ 940m implies a post-synergy multiple of c . 9.9x EV / EBITDA in 2023 / 24 and sub-9x in 2024 / 25 ( averaging years to remove biennial effect ).
The consideration is financed in cash and $ 210m of Informa equity . An additional earn-up of $ 45m is payable if and when Informa ’ s share price reaches 850p within a two-year period .
Tarsus owns and operates a portfolio of 160 + Live and On-Demand B2B Event brands and its top 10 brands are set to expand Informa ’ s Tier 1 portfolio to more than 85 brands . In 2023 , Tarsus full year revenues are estimated to be more than £ 175m .
Informa has now embarked on a Combination Programme which it says will be focused on maximising 2023 performance , ensuring the portfolios enter 2024 operating as one company under the Informa brand .
Informa ’ s Mark Temple-Smith will step in as executive chair of Tarsus from completion through to the end of the Combination Programme in January 2024 . He is currently Informa Markets chief operating officer and was formerly the CEO of Asia for Tarsus .
Emslie will become a senior advisor to the Informa Group through the Combination Programme , guiding on talent , brands and partnerships .
Completion of the deal is expected by 1 July 2023 .
18 Issue 2 2023 www . exhibitionworld . co . uk