Ascential to sell digital commerce business, WGSN for £1.4bn

30th Oct 2023 07:17

(Sharecast News) - Ascential said on Monday that it has agreed to sell its digital commerce business and its product design business, WGSN, for a combined £1.4bn.

The digital commerce business will be sold to Omnicom for around £741m, while WGSN will be sold to Apax Partners for up to £700m.

Once the deals complete, Ascential expects to return around £850m to shareholders, most likely by way of a special dividend, "although the quantum, timing and form of the return of value will remain at the discretion of the board".

The company said that following completion of the deals, it will be composed substantially of the "world-leading" events business, "which is positioned for continued success as a high quality, independent UK-listed business".

Chairman Scott Forbes said: "The board firmly believes that the proposed sales of digital commerce and WGSN represent excellent value for shareholders, including the return of a significant portion of the combined proceeds.

"Furthermore, these actions are compelling in that they will enable us to achieve the objectives of the strategic review, addressing the distinct investment propositions of Ascential's three businesses, while also better positioning each business to achieve their growth ambitions."