Informa plc (LON:INF) has confirmed that, following the announcement within the company’s 2020 Full Year Results that it was pursuing an opportunity in the Financial Intelligence market, the agreement has been signed.
The agreement sees Informa combining its existing FBX business with Novantas. FBX is part of the Financial Intelligence portfolio within Informa Intelligence and provides quantitative and qualitative competitive intelligence solutions for US retail banks, with particular strength in the mortgage market. Novantas provides quantitative and qualitative competitive intelligence solutions for US retail banks, with particular strength in the deposits market. This combination seeks to create a leading competitive intelligence and specialist data business serving the retail banking markets.
The agreement is structured as an acquisition of Novantas on a cash and debt free basis by Informa and mid-market private equity firm, Inflexion, with Informa contributing its FBX business as consideration, whose assets have a fair value of $243m. At the date of acquisition, Informa will own 57% of the combined business and it will therefore be fully consolidated for reporting purposes. The transaction involves no cash contribution from Informa, nor any deferred or contingent consideration.
Completion is expected by the end of June 2021, subject to customary regulatory approvals.