Informa PLC Market update on Financial Intelligence (5138W)
April 26 2021 - 2:00AM
UK Regulatory
TIDMINF
RNS Number : 5138W
Informa PLC
26 April 2021
Informa LEI: 5493006VM2LKUPSEDU20
Informa PLC Press Release
26 April 2021
Market update on Financial Intelligence
Following the announcement within Informa's 2020 Full Year
Results that it was pursuing an opportunity in the Financial
Intelligence market, the Group is today confirming the agreement
has been signed.
The agreement sees Informa combining its existing FBX business
with Novantas. FBX is part of the Financial Intelligence portfolio
within Informa Intelligence and provides quantitative and
qualitative competitive intelligence solutions for US retail banks,
with particular strength in the mortgage market. Novantas provides
quantitative and qualitative competitive intelligence solutions for
US retail banks, with particular strength in the deposits market.
This combination seeks to create a leading competitive intelligence
and specialist data business serving the retail banking
markets.
The agreement is structured as an acquisition of Novantas on a
cash and debt free basis by Informa and mid-market private equity
firm, Inflexion, with Informa contributing its FBX business as
consideration, whose assets have a fair value of $243m. At the date
of acquisition, Informa will own 57% of the combined business and
it will therefore be fully consolidated for reporting purposes. The
transaction involves no cash contribution from Informa, nor any
deferred or contingent consideration.
Completion is expected by the end of June 2021, subject to
customary regulatory approvals.
Enquiries
Stephen A. Carter, Group Chief Executive +44 (0) 20 7017 5771
Gareth Wright, Group Finance Director +44 (0) 20 7017 7096
Richard Menzies-Gow, Director of IR
& Communications +44 (0) 20 3377 3445
Tim Burt / Zoe Watt - Teneo +44 (0) 20 7240 2486
----------------------------------------- --------------------
Notes to Editors
The Agreement
The assets and profits of FBX and Novantas will be combined in a
partnership agreement, subject to finalisation of terms and
documentation. For the year ended 31 December 2020, the FBX
business reported $8.5m of profit before tax, and at 31 December
2020, the gross assets of FBX were $50m. For the year ended 31
December 2020, Novantas is expected to report $9.6m of profit
before tax and at 31 December 2020, the gross assets of Novantas,
excluding cash were $37m.
The relative scale of the transaction means it is not expected
to have any material impact on the Group's earnings per share in
2021.
Equity in the combined business is in the form of preference
shares and common stock shares. Beyond Informa's majority
shareholding of common stock, at the point of acquisition Inflexion
and Novantas shareholders will also hold significant minority
stakes in the combined business.
Informa's interest in the partnership is expected to be
retained, subject to customary exit rights of the other
shareholders on agreed terms and conditions. There are exit rights
for all parties, applicable from the sixth year, that will be based
on the prevailing market value. As this is neither pre-determined
nor subject to a cap, the agreement is deemed to be a Class 2
transaction under UK Listing Rules.
Informa PLC
Informa is a leading international Information Services,
Advanced Knowledge, Exhibitions and Events Group. It helps
commercial, professional and academic communities work smarter and
make better decisions faster, through specialist content and
intelligence, and opportunities to connect and learn. For more
information, please visit www.informa.com .
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END
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