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Strong Financial Profile with Significant Synergy Opportunities
TechTarget expects to report revenue of approximately $230 million and Adjusted EBITDA of approximately $70 million for the year ended December 31, 2023.1 The Informa Tech assets being contributed are expected to generate 2024 revenues of approximately $275 million and Adjusted EBITDA of approximately $50 million.
New TechTarget's operating plan forecasts double-digit organic revenue growth, more than 50% revenue under long-term contracts and attractive operating leverage with at least 50% incremental Adjusted EBITDA margins, 35%+ Adjusted EBITDA margins within three years of closing and consistent, strong free cash flow. Through a combination of organic and inorganic growth, the ambition is for New TechTarget to generate $1 billion in annual revenue within five years of closing.
New TechTarget forecasts $45 million in total annual EBITDA synergies within three years of closing, of which $25 million are from cost savings generated through increased scale, improved productivity, product margin rationalization and efficiencies in real estate, software, systems, and corporate functions. New TechTarget also expects to drive significant revenue synergies over time by introducing TechTarget's product suite, including Priority Engine, BrightTALK and Content to Close programs, to Informa Tech customers. Furthermore, the additional first-party purchase intent data garnered from Informa Tech's leading digital brands will improve TechTarget's intent offerings and are expected to accelerate revenue growth.
The creation of New TechTarget provides both individual sets of shareholders with a balance of immediate benefits and longer-term upside, with the major focus on the significant value that will be generated by creating a leader in a growing market.
| Combination Value Creation | |
| Informa PLC Value Creation | TechTarget Value Creation |
| Access to leading brand | Immediate cash payment to shareholders ($350m) |
| Scale in the US (where the customers/value are) | Value premium on Day 1 |
| US listing (NASDAQ) | Participation in combination upside |
| Specialist talent and management | Increased market capitalization |
Fully consolidated financials
| Diversification of revenue via paid subscriptions |
| Scale in Specialist Tech Research via Omdia/Canalys/Enterprise Strategy Group | |
| Expanded access to intent-based first party data | Expanded access to intent-based first party data |
| Operational scale benefits | Operational scale benefits |
| Operating synergies | Operating synergies |
| Scaled player in long-term growth market | Scaled player in long-term growth market |
New TechTarget Headquarters, Leadership and Governance
New TechTarget will be headquartered in Newton, Massachusetts. Gary Nugent, current CEO of Informa Tech, will relocate from London to Newton and serve as CEO of New TechTarget. Michael Cotoia, current CEO of TechTarget, will be Special Advisor to the CEO, focused primarily on ensuring a smooth combination post-closing.
Following the close of the transaction, the Board of Directors of New TechTarget will consist of nine members, including Mr. Nugent and Non-Executive Directors with a combination of leadership and relevant experience from both companies: Don Hawk (TechTarget Co-Founder and Executive Director), Christina Van Houten (TechTarget Independent Director), Perfecto Sanchez (TechTarget Independent Director), Stephen A. Carter (Informa Group Chief Executive), Alex Roth (Informa Strategy Director), Sally Ashford (Informa HR Director), and David Flaschen (retiring Informa PLC Non-Executive Director). In addition, a new Chairman of the Board will be appointed.
Path to Completion
The transaction has been approved unanimously by the Boards of Directors of TechTarget and Informa PLC. The transaction is expected to close in the second half of 2024 and is subject to approval by TechTarget shareholders, regulatory approvals and the satisfaction of other customary closing conditions. Upon completion, New TechTarget is expected to trade on NASDAQ under the ticker symbol TTGT.
TechTarget Reports Preliminary Full Year 2023 Revenue and Adjusted EBITDA
TechTarget expects to report revenue of approximately $230 million and Adjusted EBITDA of approximately $70 million for the year ended December 31, 2023.2
Posted In: TTGT
