TechTarget to Expand Scale and Leadership Position in B2B Data and Market Access through Strategic Combination with Informa Tech’s Digital Businesses
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Insights
The strategic merger between TechTarget and Informa Tech to form New TechTarget represents a significant consolidation in the B2B Data and Market Access sector. This move is poised to enhance market reach, product diversification and financial robustness of the combined entity. From a market perspective, the expansion into new verticals and geographies is likely to increase the total addressable market substantially, which is a key factor in driving organic revenue growth.
The synergy of TechTarget's purchase intent data and Informa Tech's content and events portfolio creates a comprehensive suite of solutions for enterprise technology vendors. This strategic alignment is expected to improve customer acquisition and retention by leveraging cross-selling opportunities and enhancing the product mix. Additionally, the combined entity's focus on first-party data and intent signals is particularly relevant in an era where data privacy concerns and regulations are increasing, making first-party data a crucial asset for marketing and sales operations.
The financial forecast of achieving 35%+ Adjusted EBITDA margins and strong free cash flow within three years post-closing indicates a strong value proposition for shareholders. The upfront cash payment, coupled with the opportunity to participate in the long-term upside of a larger, more diversified company, offers immediate and deferred benefits to existing shareholders.
Analyzing the financial aspects of the merger, the preliminary unaudited full year 2023 revenue of approximately $230 million and Adjusted EBITDA of approximately $70 million for TechTarget, coupled with the expected 2024 revenues of approximately $275 million and Adjusted EBITDA of approximately $50 million from the Informa Tech assets, paints a promising picture of the combined company's earning potential. The forecasted double-digit organic revenue growth and the ambitious target of $1 billion in annual revenue within five years are indicative of aggressive growth strategies and confidence in the market position of New TechTarget.
The proposed $45 million in total annual EBITDA synergies within three years, with $25 million from cost savings, reflects a strategic plan for operating leverage and efficiency. These figures suggest that the merger is not only growth-oriented but also focused on profitability and margin improvement. The significant investment in the merger by Informa PLC, including a $350 million cash contribution, demonstrates a commitment to the long-term success of New TechTarget.
From a legal standpoint, the transaction's completion is contingent upon regulatory approvals and the approval of TechTarget shareholders, which are standard prerequisites for mergers of this scale. The unanimous approval by the Boards of Directors of both companies indicates a strong consensus on the strategic value of the merger. It is crucial, however, for investors to monitor the regulatory landscape, as any antitrust concerns or regulatory hurdles could impact the timeline or terms of the deal.
The detailed governance structure of New TechTarget, including the appointment of a new Chairman and the composition of the Board of Directors, reflects a thorough integration plan aimed at combining the strengths of both organizations. This is essential for ensuring a smooth transition and maintaining stakeholder confidence. Additionally, the legal intricacies of the transaction, such as the exchange of equity stakes and the cash payment to shareholders, are vital considerations for investors assessing the short-term liquidity impact and long-term equity value.
TechTarget shareholders to receive approximately
Informa PLC to contribute Informa Tech’s digital businesses and
New TechTarget expected to drive double-digit organic revenue growth,
TechTarget reports preliminary unaudited full year 2023 revenue and Adjusted EBITDA
Informa PLC will contribute its Informa Tech digital businesses and
- Omdia, the fourth largest technology research firm;
- Industry Dive, a leading provider of specialist content to decision makers with 37 websites across vertical B2B markets;
- A portfolio of specialist industry-leading digital media brands, including InformationWeek, Light Reading, Dark Reading, Network Computing and AI Business;
- NetLine, a leading intent driven Lead Generation Platform; and
- Access to IIRIS, Informa PLC’s proprietary B2B data platform, taking New TechTarget’s total B2B audience to ~50 million.
“The addition of Informa Tech’s digital businesses has the ability to accelerate TechTarget’s strategic roadmap by allowing it to continue to innovate leading products, offer customers end-to-end solutions and grow profitably and create a platform to complete meaningful strategic acquisitions,” said Gregory Strakosch, Executive Chairman and Co-Founder of TechTarget. “Following a robust evaluation by the Board of Directors of strategic alternatives focused on enhancing shareholder value, the Board unanimously believes the proposed transaction is highly attractive to our shareholders, providing immediate cash value as well as the opportunity to continue to participate in the long-term value-creation of a larger, more diversified and stronger combined company.”
TechTarget CEO Michael Cotoia added, “We believe that the importance of permission-based audiences and first-party data is growing exponentially, and this combination positions New TechTarget to capitalize on these impactful trends by increasing our first-party intent signals, archive of original content, traffic footprint and size of our permission-based audience. I look forward to working with Informa Tech CEO Gary Nugent to combine our talented teams, drive new growth opportunities and unlock the full potential of this combination.”
“Today we significantly strengthen Informa’s position in the growing B2B Digital Services market, creating a platform to serve B2B customers at scale digitally, as we already do in Live & On-Demand B2B Events,” said Stephen Carter, Informa PLC Group Chief Executive. “Over the last three years, Informa has built a proprietary first-party data platform, IIRIS, and expanded our position in the B2B Digital Services market. Now, through a majority shareholding in US-listed TechTarget, we are positioning this business firmly where the customers and the value are.”
Mr. Nugent commented, “Today we are creating a leading platform in B2B Data and Market Access that combines specialist brands, specialist content and cutting-edge technology, all underpinned by unique B2B audiences and permissioned First-Party Data, providing B2B buyers with more opportunities to influence purchasing decisions, identify new customers and drive revenue.”
New TechTarget: A Leading Platform in B2B Data and Market Access |
Leading Industry Brand: TechTarget |
Leading Buyer Intent Platform: Priority Engine |
~50 million Permissioned First-Party B2B Audience Data: TechTarget, IIRIS |
220+ Leading Specialist B2B Content & Brands: TechTarget, Industry Dive, Dark Reading |
Leading Tech Research: Omdia, Canalys, Enterprise Strategy Group |
Leading Demand Generation and Engagement Platforms: TechTarget, NetLine, BrightTALK |
Leading Content Development Services: BrightTALK, Studio ID |
Compelling Strategic Benefits
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Enhances Scale Across Geographies and Verticals, Market Expertise and First-Party Data and Solutions: New TechTarget is expected to have more than 8,600 customers operating in over 20 countries, unlocking opportunities in new geographic and vertical markets at a faster pace than either company believes it can do on its own.
New TechTarget will have a larger research scope and greater access to first-party purchase intent data from Informa Tech’s leading portfolio of specialist digital brands, bringing its total permission-based first-party audience to approximately 50 million.
The greater market opportunity and scale are also expected to increase the resilience of the business by increasing its presence in new markets and adding additional buyer personas.
- Expands Total Addressable Market: New TechTarget is positioned to be a dynamic, stronger player in a rapidly expanding market. The combination is expected to increase TechTarget’s current addressable market by more than 10x, with the ability to reach 200,000 global customers across technology-enabled verticals, many of which are in earlier stages of modernization and digitization of go-to-market strategies and workflows than TechTarget’s existing verticals.
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Increases Product Diversification to Support All Phases of the Go-To-Market: The combined business will offer a compelling value proposition for global B2B vendors offering end-to-end solutions that support all phases of the go-to-market – from strategy, messaging and content to awareness, influence and demand generation to activation and sales enablement. This powerful combination fueled by first-party audiences and purchase intent data will offer New TechTarget’s customers the opportunity to better grow their revenue.
In addition, through a new license agreement with IIRIS, New TechTarget will have exclusive access to first-party purchase intent data from Informa PLC’s leading face-to-face technology events including Black Hat, Enterprise Connect, Data Center World, Channels Partner Expo, Canalys Forums, and others.
Product |
Description |
Audience Development |
Specialist Business Content/Brands that inform and educate B2B professionals |
Permissioned First-Party
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Profile and behavioral insight on B2B buyers provided through proprietary subscriptions and interactions with specialist B2B Content/Brands, including permission to use data for targeted marketing |
Buyer Intent |
Individual prospect level data through tech-enabled analysis of purchase intent across segmented B2B audiences |
Specialist Technology
|
Paid subscription-based access to specialist B2B market/product data, analytics and analysis, and custom project research that informs market, product and go-to-market strategy |
Demand Generation
|
Brand awareness and targeted lead generation through data-driven analysis of segmented B2B audiences |
Content Development |
Creation of bespoke content for B2B vendors looking to reach specialist B2B audiences |
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Accelerates Expansion Opportunities: New TechTarget will be well positioned to drive growth in technology-enabled B2B markets. The combined assets build on TechTarget’s acquisition of Xtelligent to open opportunities in new verticals, including Healthcare, Retail, Banking, Automotive, Food, Legal, Manufacturing, Utilities, and others. In addition, the combined platform better positions New TechTarget to capitalize on the current development and launch of new AI products that are expected to support a growing customer base.
New TechTarget will introduce TechTarget’s suite of products and services to Informa Tech customers and the additional first-party purchase intent data garnered from Informa Tech’s assets will strengthen TechTarget’s intent offerings to drive accelerated revenue growth. New TechTarget will also have enhanced capacity to complete value-focused acquisitions that can build on its leading platform.
Strong Financial Profile with Significant Synergy Opportunities
TechTarget expects to report revenue of approximately
New TechTarget’s operating plan forecasts double-digit organic revenue growth, more than
New TechTarget forecasts
The creation of New TechTarget provides both individual sets of shareholders with a balance of immediate benefits and longer-term upside, with the major focus on the significant value that will be generated by creating a leader in a growing market.
Combination Value Creation |
|
Informa PLC Value Creation |
TechTarget Value Creation |
Access to leading brand |
Immediate cash payment to shareholders ( |
Scale in the US (where the customers/value are) |
Value premium on Day 1 |
US listing (NASDAQ) |
Participation in combination upside |
Specialist talent and management |
Increased market capitalization |
Fully consolidated financials
|
Diversification of revenue via paid subscriptions |
Scale in Specialist Tech Research via Omdia/Canalys/Enterprise Strategy Group |
|
Expanded access to intent-based first party data |
Expanded access to intent-based first party data |
Operational scale benefits |
Operational scale benefits |
Operating synergies |
Operating synergies |
Scaled player in long-term growth market |
Scaled player in long-term growth market |
New TechTarget Headquarters, Leadership and Governance
New TechTarget will be headquartered in
Following the close of the transaction, the Board of Directors of New TechTarget will consist of nine members, including Mr. Nugent and Non-Executive Directors with a combination of leadership and relevant experience from both companies: Don Hawk (TechTarget Co-Founder and Executive Director), Christina Van Houten (TechTarget Independent Director), Perfecto Sanchez (TechTarget Independent Director), Stephen A. Carter (Informa Group Chief Executive), Alex Roth (Informa Strategy Director), Sally Ashford (Informa HR Director), and David Flaschen (retiring Informa PLC Non-Executive Director). In addition, a new Chairman of the Board will be appointed.
Path to Completion
The transaction has been approved unanimously by the Boards of Directors of TechTarget and Informa PLC. The transaction is expected to close in the second half of 2024 and is subject to approval by TechTarget shareholders, regulatory approvals and the satisfaction of other customary closing conditions. Upon completion, New TechTarget is expected to trade on NASDAQ under the ticker symbol TTGT.
TechTarget Reports Preliminary Full Year 2023 Revenue and Adjusted EBITDA
TechTarget expects to report revenue of approximately
Conference Call
The two companies will host a joint conference call tomorrow, January 11, 2024, at 8:30 AM ET to discuss the transaction. The live webcast can be accessed at https://events.q4inc.com/attendee/433854863 or by dialing 404 975 4839 (domestic) or 833 470 1428 (international) with access code 322630. A replay of the call will be available for 30 days. Associated presentation materials regarding the transaction will be available on TechTarget’s transaction microsite at https://techtarget.dealfacts.com, the investor relations sections of TechTarget’s website at https://investor.techtarget.com/overview/default.aspx or Informa PLC’s website at https://www.informa.com/investors/.
Advisors
J.P. Morgan is serving as lead financial advisor and provided a fairness opinion to TechTarget; BrightTower LLC is also serving as a financial advisor and WilmerHale is serving as legal counsel to TechTarget. Centerview Partners is serving as financial advisor to Informa PLC and Clifford Chance US LLP is serving as legal counsel.
Additional Information and Where to Find It
In connection with the proposed transaction (the “proposed transaction”), among TechTarget, Inc. (“TechTarget”) Toro CombineCo, Inc. (“CombineCo”), Toro Acquisition Sub, LLC, Informa plc (“Informa”), Informa US Holdings Limited and Informa Intrepid Holdings Inc. (“Informa Tech”), TechTarget will prepare and file relevant materials with the Securities and Exchange Commission (the “SEC”), including a registration statement on Form S-4 that will contain a proxy statement of TechTarget that also constitutes a prospectus of CombineCo (the “Proxy Statement/Prospectus”). A definitive Proxy Statement/Prospectus will be mailed to stockholders of TechTarget. TechTarget and CombineCo may also file other documents with the SEC regarding the proposed transaction. This communication is not a substitute for any proxy statement, registration statement or prospectus, or any other document that TechTarget or CombineCo (as applicable) may file with the SEC in connection with the proposed transaction. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS OF TECHTARGET ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THE PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED BY TECHTARGET OR COMBINECO WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, IN CONNECTION WITH THE PROPOSED TRANSACTION, WHEN THEY BECOME AVAILABLE BECAUSE THESE DOCUMENTS CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. TechTarget investors and security holders will be able to obtain free copies of the Proxy Statement/Prospectus (when they become available), as well as other filings containing important information about TechTarget, CombineCo, and other parties to the proposed transaction (including Informa), without charge through the website maintained by the SEC at www.sec.gov. Copies of the documents filed with the SEC by TechTarget will be available free of charge under the tab “Financials” on the “Investor Relations” page of TechTarget’s internet website at https://investor.techtarget.com or by contacting TechTarget’s Investor Relations Department at gmann@techtarget.com.
Participants in the Solicitation
Informa, TechTarget, CombineCo, and their respective directors and certain of their respective executive officers and employees may be deemed to be participants in the solicitation of proxies from TechTarget’s stockholders in connection with the proposed transaction. Information regarding the directors of Informa is contained in Informa’s annual reports and accounts available on Informa's website at www.informa.com/investors/ and in the National Storage Mechanism at data.fca.org.uk/#/nsm/nationalstoragemechanism. Information regarding the directors and executive officers of TechTarget is contained in TechTarget’s proxy statement for its 2023 annual meeting of stockholders, filed with the SEC on April 19, 2023, and in other documents subsequently filed with the SEC. Additional information regarding the participants in the proxy solicitations and a description of their direct or indirect interests, by security holdings or otherwise, will be contained in the Proxy Statement/Prospectus and other relevant materials filed with the SEC (when they become available). These documents can be obtained free of charge from the sources indicated above.
No Offer or Solicitation
This communication is for informational purposes only and is not intended to and does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any offer, solicitation or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Cautionary Note Regarding Forward-Looking Statements
This communication contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve substantial risks and uncertainties. All statements, other than historical facts, are forward-looking statements, including: statements regarding the expected timing and structure of the proposed transaction; the ability of the parties to complete the proposed transaction considering the various closing conditions; the expected benefits of the proposed transaction, such as improved operations, enhanced revenues and cash flow, synergies, growth potential, market profile, business plans, expanded portfolio and financial strength; the competitive ability and position of CombineCo following completion of the proposed transaction; legal, economic, and regulatory conditions; and any assumptions underlying any of the foregoing. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “plan,” “could,” “would,” “project,” “predict,” “continue,” “target,” or the negatives of these words or other similar terms or expressions that concern TechTarget’s or CombineCo’s expectations, strategy, priorities, plans, or intentions. Forward-looking statements are based upon current plans, estimates, and expectations that are subject to risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. We can give no assurance that such plans, estimates, or expectations will be achieved, and therefore, actual results may differ materially from any plans, estimates, or expectations in such forward-looking statements.
Important factors that could cause actual results to differ materially from such plans, estimates, or expectations include, among others: that one or more closing conditions to the proposed transaction, including certain regulatory approvals, may not be satisfied or waived, on a timely basis or otherwise, including that a governmental entity may prohibit, delay, or refuse to grant approval for the consummation of the proposed transaction, may require conditions, limitations, or restrictions in connection with such approvals or that the required approval by the shareholders of TechTarget may not be obtained; the risk that the proposed transaction may not be completed in the time frame expected by Informa, TechTarget, or CombineCo, or at all; unexpected costs, charges, or expenses resulting from the proposed transaction; uncertainty of the expected financial performance of CombineCo following completion of the proposed transaction; failure to realize the anticipated benefits of the proposed transaction, including as a result of delay in completing the proposed transaction or integrating the relevant portion of the Informa Tech business with the business of TechTarget; the ability of Informa to implement its business strategy; difficulties and delays in achieving revenue and cost synergies of Informa; the occurrence of any event that could give rise to termination of the proposed transaction; potential litigation in connection with the proposed transaction or other settlements or investigations that may affect the timing or occurrence of the proposed transaction or result in significant costs of defense, indemnification, and liability; evolving legal, regulatory, and tax regimes; changes in economic, financial, political, and regulatory conditions, in
Any forward-looking statements speak only as of the date of this communication. None of Informa, TechTarget, or CombineCo undertakes any obligation to update any forward-looking statements, whether as a result of new information or developments, future events, or otherwise, except as required by law. Neither future distribution of this communication nor the continued availability of this communication in archive form on TechTarget’s website at https://investor.techtarget.com or Informa’s website at www.informa.com/investors should be deemed to constitute an update or re-affirmation of these statements as of any future date.
About TechTarget
TechTarget (Nasdaq: TTGT) is the global leader in purchase intent-driven marketing and sales services that deliver business impact for enterprise technology companies. By creating abundant, high-quality editorial content across approximately 150 websites and 1,000 webinars and virtual event channels, TechTarget attracts and nurtures communities of technology buyers researching their companies’ information technology needs. By understanding these buyers’ content consumption behaviors, TechTarget creates the purchase intent insights that fuel efficient and effective marketing and sales activities for clients around the world.
TechTarget has offices in
About Informa Tech
Informa Tech is a leading provider of market insight and market access to the global business technology community. Through in-depth expertise and an engaged audience community, Informa Tech helps business professionals make better technology decisions and marketers reach the most powerful tech buyers and influencers in the world. Across its portfolio of over 100+ trusted brands, Informa Tech has over 1000 industry experts, including over 400 research analysts and consultants in global research group Omdia, and a monthly audience reach of over 125 million. Informa Tech is a division of FTSE 100 company Informa plc. For more information, visit informatech.com
The digital businesses of Informa Tech being combined with TechTarget include Industry Dive (Specialist B2B Content/Brands), Omdia (Specialist Tech Research), NetLine (Demand Generation and Buyer Intent), and other Specialist Tech Digital Media Brands (eg Information Week, Light Reading, Heavy Reading, AI Business).
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1 These financial results are preliminary and unaudited and are subject to revision in connection with TechTarget’s financial closing procedures and finalization of TechTarget’s consolidated financial statements for the year ended December 31, 2023. Actual results for the year ended December 31, 2023 may differ from these preliminary results.
2 These financial results are preliminary and unaudited and are subject to revision in connection with TechTarget’s financial closing procedures and finalization of TechTarget’s consolidated financial statements for the year ended December 31, 2023. Actual results for the year ended December 31, 2023 may differ from these preliminary results.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240110017625/en/
TechTarget, Media Contact:
Chris Kittredge or Ben Spicehandler
techtarget@fgsglobal.com
TechTarget, Investor Relations:
Dan Noreck
dnoreck@techtarget.com
Informa PLC:
Stephen A. Carter, Group Chief Executive: +44 (0) 20 8052 0400
Gareth Wright, Group Finance Director: +44 (0) 20 8052 0400
Richard Menzies-Gow, Director of IR & Communications: +44 (0) 20 8052 2787
Tim Burt / Simon Duke – Teneo: +44 (0) 7583 413254 / +44 (0) 7815 779225
Source: TechTarget
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