Informa to buy Cannes lions and Money2020 owner
Recommended offer of 568 pence per share represents 53 premium
Shares in Ascential jump 26, Informa broadly flat

LONDON, July 24 Reuters Britain39;s Informa said on Wednesday it had reached a deal to buy Cannes Lions Festival owner Ascential for 1.2 billion pounds 1.6 billion, adding the flagship ad industry conference to its portfolio of events.

Shares in Ascential, which also owns the Money2020 fintech events, jumped 26 to 565 pence in early deals, just shy of the 568 pence per share cash offer.

Informa, which also upgraded its annual profit expectations, recovered early losses to trade broadly flat.

Informa said it would expand both events and accelerate growth, helped by its data platform and understanding of both the marketing and fintech sectors.

Informa Chief Executive Stephen A. Carter said both companies delivered doubledigit growth in the first half of this year and were confident about their prospects.

Powerful brands serving specialist markets are doing extremely well, he said in an interview.

We39;re not buying this business for cost reduction, we39;re buying this business for growth.

Informa39;s offer is a 53 premium to Ascential39;s closing price of 371 pence on Monday.

Informa said the deal would boost adjusted earnings per share by at least 5 in the first full year, based on strong revenue growth and 12 million pounds of cost savings.

Citi analysts said the fairly significant synergies and the…