In a statement released this morning, Informa (LSE: INF) confirmed press speculation that it is considering the acquisition of Springer Science + Business Media (‘Springer’). Informa revealed it is in discussions with Springer’s major private shareholders, Cinven and Candover and it has received due diligence materials from the company.
According to Informa, under the ‘right terms’, a deal to acquire Springer would be an important strategic step for the company and the deal could generate significant value. The company said that ‘Combining Springer and Informa would bring together two respected and profitable academic publishers’.
Informa noted however, that there can be no certainty that an agreement will be reached with the Shareholders, on terms that are acceptable to the Board of Informa.
Informa anticipates that the potential acquisition would generate significant synergy benefits from the ‘rationalisation of the combined cost base’ and improved marketing and operating efficiencies.
The enhanced journal and book portfolio would provide further sustainable growth and value for Informa's shareholders. Both businesses have strong cash generation.
Informa said a further announcement will be made in due course.