Informa PLC To Contribute Informa Tech's Digital Businesses And $350M Of Cash In Exchange For 57% Stake In New TechTarget; Sees FY23 Revenue $230M Vs $228.82M Est.
Portfolio Pulse from Benzinga Newsdesk
Informa PLC is set to contribute Informa Tech's digital businesses and $350M cash for a 57% stake in a new entity, New TechTarget. The deal anticipates FY23 revenue of $230M and Adjusted EBITDA of $70M for TechTarget. New TechTarget is expected to generate $275M in revenue and $50M in Adjusted EBITDA in 2024. The plan includes double-digit organic revenue growth, 50% revenue under long-term contracts, and 35%+ Adjusted EBITDA margins within three years. The new entity aims for $1 billion annual revenue within five years and forecasts $45M in EBITDA synergies within three years. The headquarters will be in Newton, Massachusetts, with Gary Nugent as CEO. The transaction, approved by both boards, is expected to close in the second half of 2024, subject to shareholder and regulatory approvals. New TechTarget will trade on NASDAQ under the symbol TTGT.
January 10, 2024 | 9:37 pm
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TechTarget is expected to merge with Informa Tech, creating a new entity with projected FY23 revenue of $230M and Adjusted EBITDA of $70M. The new company aims for $1B annual revenue within five years and expects significant EBITDA synergies.
The merger news is highly relevant and important for TechTarget as it is expected to significantly increase its scale, revenue, and market presence. The positive outlook and synergy expectations are likely to be viewed favorably by investors, potentially leading to a short-term increase in stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100