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Informa to sell pharma intelligence business for £1.9bn
10th Feb 2022 08:25
(Sharecast News) - Events organiser Informa said on Thursday that it has agreed to sell its pharma intelligence business to US investment firm Warburg Pincus for £1.9bn, as it announced a share buyback.
Pharma Intelligence, which provides specialist intelligence and data for clinical trials, drug development and regulatory compliance, is the largest business within Informa's intelligence division.
The company said the sale and share buyback were "two significant steps" in its 2021-2024 Growth Acceleration Plan II (GAP II).
Chief executive Stephen A. Carter said: "Like GAP I, our GAP II programme is ambitious for growth, value creation and shareholder returns. Since announcing the intention to divest our Informa Intelligence portfolio, we have received significant interest in its high-performing brand portfolio, leading to today's binding agreement for Pharma Intelligence, which reflects the quality and value created in this business, as well as its significant future potential."
Informa said it plans to start the share buyback programme with immediate effect. It has entered into a non-discretionary arrangement with its broker, Merrill Lynch International, to purchase on its behalf ordinary shares of 0.1p each in the company, with the intention to cancel those shares purchased.
The programme will run through to the annual general meeting in June, and the maximum amount allocated to the initial tranche of the buyback programme will be £100m.
Informa - which is due to release full-year results next month - also confirmed on Thursday that it expects report trading in 2021 in line with guidance for revenue of around £1.8bn and adjusted operating profit of £375m.
"Since the beginning of the Covid pandemic, the group has put particular emphasis on cash control, cash management and cash generation as key financial and company performance targets," it said. "This focus has delivered a strong performance through the year and, as a result, free cash flow is expected to be ahead of previous guidance of £325m+."
Pharma Intelligence, which provides specialist intelligence and data for clinical trials, drug development and regulatory compliance, is the largest business within Informa's intelligence division.
The company said the sale and share buyback were "two significant steps" in its 2021-2024 Growth Acceleration Plan II (GAP II).
Chief executive Stephen A. Carter said: "Like GAP I, our GAP II programme is ambitious for growth, value creation and shareholder returns. Since announcing the intention to divest our Informa Intelligence portfolio, we have received significant interest in its high-performing brand portfolio, leading to today's binding agreement for Pharma Intelligence, which reflects the quality and value created in this business, as well as its significant future potential."
Informa said it plans to start the share buyback programme with immediate effect. It has entered into a non-discretionary arrangement with its broker, Merrill Lynch International, to purchase on its behalf ordinary shares of 0.1p each in the company, with the intention to cancel those shares purchased.
The programme will run through to the annual general meeting in June, and the maximum amount allocated to the initial tranche of the buyback programme will be £100m.
Informa - which is due to release full-year results next month - also confirmed on Thursday that it expects report trading in 2021 in line with guidance for revenue of around £1.8bn and adjusted operating profit of £375m.
"Since the beginning of the Covid pandemic, the group has put particular emphasis on cash control, cash management and cash generation as key financial and company performance targets," it said. "This focus has delivered a strong performance through the year and, as a result, free cash flow is expected to be ahead of previous guidance of £325m+."