Specialist events-led intelligence and advisory business, Informa, has agreed to buy Ascential, the UK media company behind the Cannes Lions Festival of Creativity, and the World Advertising Research Center (WARC) for 1.2 billion pounds (A$2.36 billion).

Ascential reported an adjusted EBITDA of 56 million pounds (A$110 million) in the 2023 calendar year, putting the transaction at an earnings multiple of around 20x - an unusually high figure for the sector, and likely attributed to the prestige of the Lions brand. For comparison, Informa's 2018 acquisition of B2B events business UBM was thought to have drawn an implied EBIDTA multiple of around 12-14x, with the deal valued at 3.9 billion pounds (A$7.68 billion).

Informa boss Stephen A. Carter said the business is uniquely positioned to provide the global platform and operations to enable Ascential's divisions to continue their strong growth trajectory. Carter suggests that Informa can expand Lions and Ascential's fintech events business, Money20/20, into more sectors and take advantage of new opportunities.

"Informa is in the business of creating, nurturing and growing world class B2B brands. Lions and Money20/20 are outstanding examples of such brands. Combined, we can expand them into more sectors, accelerate growth and take advantage of new opportunities," said Carter. "Informa has the operating platform and capacity. We have international reach into growth sectors. We have IIRIS, our First Party Data Platform, and we have an understanding of both the FinTech and Marketing sectors."

Philip Thomas, Chief Executive of Ascential, said the offer would deliver substantial value for shareholders and unlock further growth opportunities for their brands and people.

"I am extremely proud of all of Ascential's brands, and the people who work so hard to deliver for them every day. Our two divisions, Lions and Money20/20, have transformed how our customers around the world experience events, and benefit from both digital intelligence and advisory services. The value our businesses bring to their respective industries is clear as is the regard in which they are held by Informa. Informa is a highly respected business, famed for its expertise in B2B events, strong, ethical culture and commitment to innovation," said Thomas.

The boards of Informa and Ascential have reached agreement on the terms of a recommended cash offer for the entire issued and to be issued ordinary share capital of Ascential.