TechTarget To Expand Scale And Leadership Position In B2B Data And Market Access through Strategic Combination With Informa Tech's Digital Businesses; TechTarget Shareholders To Receive ~$11.79 Per Share In Cash And Retain A 43% Stake In New TechTarget

Author: Benzinga Newsdesk | January 10, 2024 05:37pm

TechTarget shareholders to receive approximately $11.79 per share in cash and retain a 43% stake in New TechTarget, allowing them to participate in the long-term value creation of the combined business

Informa PLC to contribute Informa Tech's digital businesses and $350 million of cash in exchange for 57% stake in New TechTarget

New TechTarget expected to drive double-digit organic revenue growth, 35%+ Adjusted EBITDA margins and strong free cash flow within three years of closing

TechTarget reports preliminary unaudited full year 2023 revenue and Adjusted EBITDA

TechTarget (NASDAQ:TTGT) and Informa PLC (LSE: INF.L), a FTSE-50 UK Group with a leading position in international B2B events, digital services and academic knowledge, today announced that the companies have entered into a definitive agreement whereby Informa PLC will combine Informa Tech's digital businesses with TechTarget to create a leading global platform in B2B Data and Market Access, focused on helping vendors in enterprise technology and other markets accelerate revenue growth. The combined company ("New TechTarget") is expected to position TechTarget as a unique end-to-end solution provider across the go-to-market: from strategy, messaging and content development to in-market activation via brand, demand generation, purchase intent data and sales enablement. The combination brings scale benefits, diversified revenue streams and strategic expansion opportunities by expanding TechTarget's current addressable market and enhancing the resilience of its business by increasing its presence in new markets and new buyer personas.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240110017625/en/

Informa PLC will contribute its Informa Tech digital businesses and $350 million of cash in exchange for a 57% stake in the combined company. The $350 million of cash, or approximately $11.79 per outstanding TechTarget share, will be paid to existing TechTarget shareholders upon completion of the transaction. Existing TechTarget shareholders will also retain a 43% equity stake in New TechTarget, allowing them to participate in the long-term value creation of the combined company. The businesses being contributed from Informa Tech consist of:

• Omdia, the fourth largest technology research firm;
• Industry Dive, a leading provider of specialist content to decision makers with 37 websites across vertical B2B markets;
• A portfolio of specialist industry-leading digital media brands, including InformationWeek, Light Reading, Dark Reading, Network Computing and AI Business;
• NetLine, a leading intent driven Lead Generation Platform; and
• Access to IIRIS, Informa PLC's proprietary B2B data platform, taking New TechTarget's total B2B audience to ~50 million.

"The addition of Informa Tech's digital businesses has the ability to accelerate TechTarget's strategic roadmap by allowing it to continue to innovate leading products, offer customers end-to-end solutions and grow profitably and create a platform to complete meaningful strategic acquisitions," said Gregory Strakosch, Executive Chairman and Co-Founder of TechTarget. "Following a robust evaluation by the Board of Directors of strategic alternatives focused on enhancing shareholder value, the Board unanimously believes the proposed transaction is highly attractive to our shareholders, providing immediate cash value as well as the opportunity to continue to participate in the long-term value-creation of a larger, more diversified and stronger combined company."

TechTarget CEO Michael Cotoia added, "We believe that the importance of permission-based audiences and first-party data is growing exponentially, and this combination positions New TechTarget to capitalize on these impactful trends by increasing our first-party intent signals, archive of original content, traffic footprint and size of our permission-based audience. I look forward to working with Informa Tech CEO Gary Nugent to combine our talented teams, drive new growth opportunities and unlock the full potential of this combination."

"Today we significantly strengthen Informa's position in the growing B2B Digital Services market, creating a platform to serve B2B customers at scale digitally, as we already do in Live & On-Demand B2B Events," said Stephen Carter, Informa PLC Group Chief Executive. "Over the last three years, Informa has built a proprietary first-party data platform, IIRIS, and expanded our position in the B2B Digital Services market. Now, through a majority shareholding in US-listed TechTarget, we are positioning this business firmly where the customers and the value are."

Mr. Nugent commented, "Today we are creating a leading platform in B2B Data and Market Access that combines specialist brands, specialist content and cutting-edge technology, all underpinned by unique B2B audiences and permissioned First-Party Data, providing B2B buyers with more opportunities to influence purchasing decisions, identify new customers and drive revenue."

New TechTarget: A Leading Platform in B2B Data and Market Access

Leading Industry Brand: TechTarget

Leading Buyer Intent Platform: Priority Engine

~50 million Permissioned First-Party B2B Audience Data: TechTarget, IIRIS

220+ Leading Specialist B2B Content & Brands: TechTarget, Industry Dive, Dark Reading

Leading Tech Research: Omdia, Canalys, Enterprise Strategy Group

Leading Demand Generation and Engagement Platforms: TechTarget, NetLine, BrightTALK

Leading Content Development Services: BrightTALK, Studio ID

Compelling Strategic Benefits

• Enhances Scale Across Geographies and Verticals, Market Expertise and First-Party Data and Solutions: New TechTarget is expected to have more than 8,600 customers operating in over 20 countries, unlocking opportunities in new geographic and vertical markets at a faster pace than either company believes it can do on its own.
  
  
  
  New TechTarget will have a larger research scope and greater access to first-party purchase intent data from Informa Tech's leading portfolio of specialist digital brands, bringing its total permission-based first-party audience to approximately 50 million.
  
  
  
  The greater market opportunity and scale are also expected to increase the resilience of the business by increasing its presence in new markets and adding additional buyer personas.
• Expands Total Addressable Market: New TechTarget is positioned to be a dynamic, stronger player in a rapidly expanding market. The combination is expected to increase TechTarget's current addressable market by more than 10x, with the ability to reach 200,000 global customers across technology-enabled verticals, many of which are in earlier stages of modernization and digitization of go-to-market strategies and workflows than TechTarget's existing verticals.
• Increases Product Diversification to Support All Phases of the Go-To-Market: The combined business will offer a compelling value proposition for global B2B vendors offering end-to-end solutions that support all phases of the go-to-market – from strategy, messaging and content to awareness, influence and demand generation to activation and sales enablement. This powerful combination fueled by first-party audiences and purchase intent data will offer New TechTarget's customers the opportunity to better grow their revenue.
  
  
  
  In addition, through a new license agreement with IIRIS, New TechTarget will have exclusive access to first-party purchase intent data from Informa PLC's leading face-to-face technology events including Black Hat, Enterprise Connect, Data Center World, Channels Partner Expo, Canalys Forums, and others.

Product	Description
Audience Development	Specialist Business Content/Brands that inform and educate B2B professionals
Permissioned First-Party Audience Data	Profile and behavioral insight on B2B buyers provided through proprietary subscriptions and interactions with specialist B2B Content/Brands, including permission to use data for targeted marketing
Buyer Intent	Individual prospect level data through tech-enabled analysis of purchase intent across segmented B2B audiences
Specialist Technology Research	Paid subscription-based access to specialist B2B market/product data, analytics and analysis, and custom project research that informs market, product and go-to-market strategy
Demand Generation and Engagement	Brand awareness and targeted lead generation through data-driven analysis of segmented B2B audiences
Content Development	Creation of bespoke content for B2B vendors looking to reach specialist B2B audiences

• Accelerates Expansion Opportunities: New TechTarget will be well positioned to drive growth in technology-enabled B2B markets. The combined assets build on TechTarget's acquisition of Xtelligent to open opportunities in new verticals, including Healthcare, Retail, Banking, Automotive, Food, Legal, Manufacturing, Utilities, and others. In addition, the combined platform better positions New TechTarget to capitalize on the current development and launch of new AI products that are expected to support a growing customer base.
  
  
  
  New TechTarget will introduce TechTarget's suite of products and services to Informa Tech customers and the additional first-party purchase intent data garnered from Informa Tech's assets will strengthen TechTarget's intent offerings to drive accelerated revenue growth. New TechTarget will also have enhanced capacity to complete value-focused acquisitions that can build on its leading platform.

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