Ascential, the FTSE 250 events, digital analytics and branding group, announced a brace of major deals today, as its plans to streamline its business impressed the City.
The company announced the £1.4 billion sale of two of its three businesses, after which it will focus on organising set-piece gatherings like the Cannes Lions festival and Money 2020.
Its digital commerce business is going to US advertising giant Omnicom in a deal worth £741 million and its product design business is being snapped up by private equity group Apex for up to £700 million. It will return £850 million of the proceeds to investors.
Ascential has been in the process of a "strategic review" for some time, its shares surged by over a third on the news of its outcome. Stock in the firm, formerly known as Emap, were up 74p to 290p, a rise of over a third.
Its chief executive, Duncan Painter, will join Omnicom and run a newly established part of the US firm's business, to be called Flywheel Digitial, that will house the digital commerce unit. Ascential's new CEO will be Philip Thomas, currently the head of the events business.
Scott Forbes, chairman, the sales “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."
Joshua Mahony at Scope Markets said the transatlantic deal highlighted "the relatively attractive valuations of UK businesses", adding that "US companies are "continuing to see the UK as a good place to do business," and:
"US companies will continue to purchase strong UK businesses on the expectation that their value will be higher on the other side of the Atlantic."
The sales are subject to shareholder approval, and is expected to go through in the first quarter of next year.
JP Morgan and Deutsche Numis are working as lead financial advisor, joint sponsor and joint corporate broker on the deals to Ascential.
