(Alliance News) - Business events and publishing firm Informa PLC said Monday it will combine its existing FBX business with Novantas to create an "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 private equity firm, Inflexion. Informa will contribute its FBX business as consideration, with fair value assets of USD243 million, rather than making any cash contribution as part of the deal. Initially, Informa will own a 57% stake in the combined business.
FBX is part of the Financial Intelligence portfolio within Informa Intelligence and provides "quantitative and qualitative competitive intelligence solutions" for US retail banks, particularly 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," Informa said.
The assets and profits of FBX and Novantas will be combined in a partnership agreement.
For 2020, the FBX business reported USD8.5 million in pretax profit and had gross assets of USD50 million at the end of the year. Novantas is expected to report pretax profit of USD9.6 million for 2020, with gross assets, excluding cash, of USD37 million as at December 31.
Shares in FTSE 100-listed Informa were up 1.0% at 555.40 pence in London on Monday.
By Will Paige; willpaige@alliancenews.com
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Informa (INF)