Ascential has agreed to a takeover deal by FTSE 100-listed events firm, Informa, for approximately £1.2bn.

As part of the deal, Informa will pay 568 pence per share for the firm that owns the Cannes Lions advertising festival, representing a premium of 53% of its closing price on Monday.

Informa, which is the world’s largest trade show operator, stated that the deal will provide up to a minimum of £12m in cost savings and efficiency improvements each year.

Ascential’s brands, Lions and Money 20/20 have been described by Informa as "leading, global, events-led platforms with premium brands". The firm added that alongside its portfolio of over 600 brands across over 20 specialist sectors over the last 15 years, Ascential’s brands make for a "powerful combination, with a blueprint for delivering further growth and expansion".

Following the announcement, The Independent reported that shares as Ascential and Informa were up by 26.4% and 3.8% respectively.

Chief executive at Informa, Stephen A. Carter, said: "Informa is in the business of creating, nurturing and growing world class B2B brands. Lions and Money20/20 are outstanding examples of such brands. Combined, we can expand them into more sectors, accelerate growth and take advantage of new opportunities."

"Informa has the operating platform and capacity. We have international reach into growth sectors. We have IIRIS, our first party data platform, and we have an understanding of both the fintech and marketing sectors."

"These strengths make us ideally placed to capture the growth and acceleration opportunities available to both Lions and Money20/20."

Chief executive at Ascential, Phillip Thomas, added: "I am extremely proud of all of Ascential's brands, and the people who work so hard to deliver for them every day. Our two divisions, Lions and Money20/20, have transformed how our customers around the world experience events, and benefit from both digital intelligence and advisory services. The value our businesses bring to their respective industries is clear as is the regard in which they are held by Informa.

"Informa is a highly respected business, famed for its expertise in B2B events, strong, ethical culture and commitment to innovation. This offer will not only deliver substantial value for our shareholders but also, together with Informa's international footprint and extensive capabilities in data and analytics, will unlock further growth opportunities for our brands and our people."

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