Events organiser Informa said on Monday it was merging its existing fintech business FBX with U.S.-based advisory services provider Novantas on a cash and debt-free basis.
The company said it will contribute FBX, which is valued at $243 million, as consideration for the deal, which involves no cash contribution from Informa.
Informa added it will own 57% of the combined business once the deal closes by the end of June. The agreement is not expected to have any material impact on the company’s earnings this year.
The company, whose losses soared to 1.14 billion pounds in 2020 due to event cancellations during the COVID-19 pandemic, said the FBX business made a profit of $8.5 million last year.
Informa said last week it expects two to three years for the events business to fully recover.
Source: Reuters.com