Launch: New TechTarget

Informa, an international B2B Events, B2B Digital Services and Academic Markets Group, last week announced an agreement to combine Informa Tech’s digital businesses with TechTarget to create US-listed New TechTarget.

Stephen A. Carter, group chief executive, Informa, said last week: ”Today we significantly strengthen Informa’s position in the growing B2B Digital Services market, creating a platform to serve B2B customers at scale digitally, as we already do in Live & On-Demand B2B Events.”

He added: ”Over the last three years, Informa has built a proprietary first party data platform, IIRIS, and expanded our position in the B2B Digital Services market. Now, through a majority shareholding in US-listed TechTarget, we are positioning this business firmly where the customers and the value are.”

TechTarget is listed and headquartered in the US, a provider of data-driven B2B products to enterprise technology customers. It delivers new customers, influences purchasing decisions and drives revenue, based on buyer intelligence derived from its first party B2B data. TechTarget estimates it will generate 2024 Revenues of c.$235m and Adjusted EBITDA of c.$73m.

Over the last three years, Informa has been building a position in B2B Digital Services. The business says it invested in IIRIS to create a B2B customer data platform for collating, standardising and analysing all the Group’s first party B2B data.

Informa says it expanded in Specialist Tech Research organically (Omdia), then extended its B2B digital product portfolio through Industry Dive (Specialist B2B Content/Brands), NetLine (Demand Generation and Buyer Intent) and most recently Canalys (Specialist Tech Research).

New TechTarget will combine TechTarget’s portfolio of B2B products and brands (eg Priority Engine, BrightTALK) with Informa Tech’s digital businesses - Industry Dive, Omdia, Canalys and NetLine, as well as the Specialist Digital Media Brands (eg Information Week, Light Reading, Heavy Reading, AI Business). In aggregate, it is estimated these digital businesses of Informa Tech will generate 2024 Revenues of c.$275m and Adjusted EBITDA of c.$50m, which when combined with TechTarget will mean New TechTarget is estimated to have 2024 revenues of c.$500m and Adjusted EBITDA of c.$120m.

The creation of New TechTarget will accelerate Informa’s ambition in B2B Digital Services, added the company, creating a platform in B2B Data & Market Access, an area offering significant growth and value. The addressable customer base for these products is primarily in the US, dominated by Enterprise Technology companies. Therefore, they say they are now planning to locate this combined business where the customers and the value are, within a US-listed company.

Informa says the Combination brings together brands and business that will give New TechTarget unique strengths in B2B Data & Market Access, including:

• Scale in Audience Development: Scale in segmented B2B audiences through a portfolio of 220+ leading Specialist B2B Tech Content Brands, and leading Tech Research business, Omdia;
• Scale in First Party B2B Data: The combination of Informa’s IIRIS proprietary data platform with the powerful B2B audience data of New TechTarget will create unique scale in permissioned first party B2B data, with access to a total B2B audience of c.50m professionals;
• Scale in B2B Customer Relationships: Established relationships with c.8,600 B2B technology customers, focused on Enterprise Technology, including key C-Suite tech decision makers;
• Scale in Leading B2B Technology: A leading buyer intent data platform, Priority Engine, leading Demand Generation platforms, TechTarget/NetLine, a leading video content marketing platform, BrightTALK, SEO-enabled content platforms and a growing number of AI-enabled tools that improve efficiency and enhance customer experience;
• Scale in Product Breadth: Full end-to-end go-to-market solutions, a range of B2B products, and significant capacity for new product investment to further expand the product portfolio;

New TechTarget will be headquartered in Newton (Boston), Massachusetts. Gary Nugent (currently CEO of Informa Tech) will become the CEO of New TechTarget. Michael Cotoia (currently CEO of TechTarget), will become special advisor to the CEO, supporting the effective combination of the businesses and delivery of New TechTarget’s growth and performance targets. Both have significant domain expertise and experience, as well as deep, long-term customer relationships in the Enterprise Technology market.

The board of directors of New TechTarget post completion will initially consist of nine directors, including the CEO and chair. The non-executive directors will combine leadership and relevant experience, including:

Stephen A. Carter (Informa Group chief executive), Alex Roth (Informa strategy director), Sally Ashford (Informa HR director), representing Informa’s shareholding.

The other non-executive directors include David Flaschen (non-executive director of Nasdaq-listed Paychex and current/retiring Informa PLC non-executive director), Don Hawk (TechTarget co-founder and current executive director), Christina Van Houten (TechTarget independent director), Perfecto Sanchez (TechTarget independent director).

In addition, a new chair of the board will be appointed with US listed company and relevant market knowledge and experience.

The boards of Informa PLC and TechTarget have unanimously approved the combination. The proposed transaction is expected to complete in the second half of 2024, subject to TechTarget majority shareholder approval and customary regulatory approvals and other conditions.

Gary Nugent, chief executive, Informa Tech, said: ”Today we are creating a leading platform in B2B Data and Market Access that combines specialist brands, specialist content and cutting-edge technology, all underpinned by unique B2B audiences and proprietary First Party Data, providing B2B buyers with more opportunities to influence purchasing decisions, identify new customers and drive revenue.”

Michael Cotoia, chief executive, TechTarget, said: ”We believe that the importance of permission-based audiences and first party data is growing exponentially, and this combination positions New TechTarget to capitalize on these impactful trends by increasing our first-party intent signals, archive of original content, traffic footprint and size of our permission-based audience. I look forward to working with Informa Tech CEO, Gary Nugent, to combine our talented teams, drive new growth opportunities and unlock the full potential of this combination.”

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