TechTarget (NASDAQ: TTGT) and Informa PLC (LSE: INF.L) have officially revealed their collaborative efforts in a definitive agreement.
The partnership involves the combination of Informa Tech’s digital businesses with TechTarget. This aims to establish a preeminent global platform in B2B Data and Market Access. This strategic move focuses on empowering vendors in enterprise technology and related sectors to expedite revenue growth.
Under the agreement, TechTarget shareholders are set to receive approximately $11.79 per share in cash. Simultaneously, they will retain a 43% equity stake in the newly formed entity, New TechTarget. This dual arrangement ensures shareholders actively participate in the long-term value creation of the combined business.
Informa PLC’s contribution includes Informa Tech’s digital businesses and $350 million in cash, securing a 57% stake in New TechTarget. This substantial cash injection equates to approximately $11.79 per outstanding TechTarget share.
The combined entity, New TechTarget, is poised to become a comprehensive solution provider across the entire go-to-market spectrum. From strategy, messaging, and content development to in-market activation through brand exposure, demand generation, purchase intent data, and sales enablement, New TechTarget aims to redefine the B2B landscape.
Key Components of the Merger
- Informa Tech’s Contribution: The merger includes key components from Informa Tech, such as Omdia, a leading technology research firm; Industry Dive, providing specialist content across 37 websites in vertical B2B markets; and a portfolio of industry-leading digital media brands, including InformationWeek, Light Reading, Dark Reading, Network Computing, and AI Business. Additionally, NetLine, a prominent intent-driven Lead Generation Platform, and access to Informa PLC’s proprietary B2B data platform, IIRIS, contribute to New TechTarget’s expanded B2B audience of approximately 50 million.
- Strategic Market Expansion: New TechTarget is positioned to enhance its geographic and vertical market presence, operating with over 8,600 customers across 20 countries. This strategic expansion seeks to increase the company’s resilience by tapping into new markets and engaging additional buyer personas.
Leadership and Governance
Upon the completion of the transaction, New TechTarget will be headquartered in Newton, Massachusetts. Gary Nugent, the current CEO of Informa Tech, will assume the role of CEO of New TechTarget. Michael Cotoia, TechTarget’s current CEO, will serve as a Special Advisor to the CEO, ensuring a seamless transition.
The Board of Directors for New TechTarget will consist of nine members, including key leaders from both companies. The transaction is expected to close in the second half of 2024, pending approval by TechTarget shareholders, regulatory clearances, and other customary closing conditions.
This strategic alliance marks a pivotal moment for TechTarget, Informa PLC, and the broader B2B landscape, paving the way for a robust and innovative global platform in B2B Data and Market Access.
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