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London’s Informa plots massive £1.2bn acquisition of US information services group

International publishing and events group Informa has announced it has proposed a £1.2bn acquisition of New York-headquartered Penton Information Services.

The multinational firm, which has its head office in London, has said that the deal is part of its ‘Growth Acceleration Plan’ (GAP) as its looks to extend its reach in the US.

Any potential deal will be funded through a combination of new debt and equity, including an underwritten rights issue of one Rights Issue Shares from which it expects to raise £715m.

Stephen A. Carter, Informa Group Chief Executive, commented that the acquisition would serve to strengthen the firm’s global exhibitions and intelligence business, and fuel its expansion across the Atlantic.

He said: “Following extensive and exclusive talks with Penton’s owners and management, today’s announcement signals the next step in GAP, underlining our commitment to accelerated growth and international scale whilst delivering attractive returns for our shareholders.

“The opportunity created through the combination of Informa and Penton balances our portfolio and increases our scale and reach, further improving the predictability and sustainability of our growth performance and cash generation.”