Exhibitions and events group Informa PLC (LSE:INF) has agreed to take over smaller rival Ascential PLC (LSE:ASCL), which owns events such as the Cannes Lions and Money20/20, for £1.2 billion.
The FTSE 100-listed group pitched its bid at 568p per share after a number of other approaches in recent months.
Ascential shares were trading at 369p until 4pm yesterday afternoon when rumours escaped and the shares shot up, leading the company to put out a statement saying it has received a conditional proposal from Informa and was "minded to recommend" it.
This morning, Informa said the two boards have reached agreement on the terms of a recommended offer.
Ascential is in the midst of selling off its Hudson MX media management business and if the disposal is completed before the date that the Informa takeover is completed, net sale proceeds will be returned to Ascential shareholders via a cash dividend, which will not affect the offer price.
Informa CEO Stephen Carter said Ascential's Lions and Money20/20 are "outstanding examples" of the sort of brands it wants to own.
"Combined, we can expand them into more sectors, accelerate growth and take advantage of new opportunities."
Ascential boss Philip Thomas said: "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."