Acquisition

RNS Number:4855P
Informa Group PLC
08 September 2003






Not for release, publication or distribution, in whole or in part, in or into
the US, Canada, Australia or Japan



8 September 2003



Informa Group plc - acquisition of MMS and announcement of placing



Introduction



Informa Group plc ("Informa" or the "Company"), the business information group,
is pleased to announce the acquisition of MMS Group Holdings Limited ("MMS"), a
leading provider of real time market commentary and analysis primarily for the
fixed income and foreign exchange markets, for a consideration of circa US$37
million (#23.7million) on a cash and debt free basis (the "Acquisition").





MMS

Founded in 1974, MMS is one of the leading providers of real time market
commentary and analysis for the global fixed income and foreign exchange
markets, with more than 20,000 subscribers worldwide. The MMS product suite
includes Credit Derivatives Market Insight, Emerging Markets Insight, Global
Fixed Income Insight and Currency Market Insight, all of which are screen-based
and distributed via third-party vendors (including Reuters and Bloomberg) and
through the MMS website, globalmarkets.com. Customers are predominantly
investment banks and brokerages, but also include central banks and corporate
treasuries. Market coverage is maintained from offices in London, New York, Hong
Kong, Frankfurt, San Francisco, Tokyo, Singapore, Sydney, Toronto, and by a
staff of approximately 190 professionals.



For the four months ended 31 December 2002 MMS reported a pre tax profit of
$138,000 and an operating profit of $1,434,000 on turnover of $11,023,000. Net
assets as at 31 December 2002 were $1,485,000.



The unaudited results for the six month period to 30 June 2003 show an operating
profit of $942,000 on turnover of $16,809,000.



Impact on the group



MMS provides similar products to MCM, a wholly owned subsidiary of Informa. By
combining the best of the existing MCM and MMS products and providing users with
additional offerings and options, the integration of MCM and MMS is expected to
enable us create one of the world's foremost authorities for market commentary
and analysis covering the capital markets. In addition, Informa believes that
there will be opportunities to realise significant savings as the businesses are
integrated.

Implementation of the integration plan is estimated to take 4-6 months at a cost
of up to $10m. We estimate that annualised cost savings equivalent to this
additional investment will be achieved within two years from the completion of
the integration by the end of the first quarter of 2004. The Acquisition is
expected to be earnings enhancing in the year ending 31 December 2004.



MMS is currently owned 68% by the funds comprising the Alchemy Plan which are
advised by Alchemy Partners LLP and managed by Alchemy Partners (Guernsey)
Limited ("Alchemy"), with the remaining 32% being held by individuals (the
"Individual Shareholders").



It is intended that the consideration for the Acquisition will be funded in part
from the proceeds of the cash and vendor placings (together, the "Placing") also
being announced today, details of which are set out below. In the event that the
placing does not proceed, Informa will fund the Acquisition wholly through its
existing debt facilities.



The Acquisition is expected to complete on 11 September 2003.



Details of the Placing



Under the Placing Informa is raising up to approximately #26 million in relation
to the funding of the Acquisition, related fees and the integration plan.



The shares issued pursuant to the Placing (the "New Shares") will, when issued,
rank pari passu in all respects with the existing issued shares of Informa.



In connection with the Placing, Informa has today entered into a placing
agreement ("the Placing Agreement") with UBS Limited ("UBS" or "UBS Investment
Bank"), pursuant to which UBS has conditionally agreed to use its reasonable
endeavours to procure subscribers for the New Shares. The Placing will be
conducted through a bookbuilding process and is not underwritten. Details of the
number of New Shares to be issued and the price at which they are offered are
expected to be determined and announced as soon as practicable after the Placing
closes.



Application has been made to the UK Listing Authority and to the London Stock
Exchange for the New Shares to be admitted to listing on the Official List and
to trading on the London Stock Exchange's market for listed securities
respectively (together "Admission"). It is expected that Admission will become
effective and dealings will commence in the New Shares at 8.00 am on 11
September 2003.



The Placing is conditional, inter alia, upon Admission becoming effective by
8.00 am on 11 September 2003 (or such later time and/or date as UBS may agree)
and on no force majeure event or material adverse change having occurred before
Admission becomes effective. The Placing is also conditional on the completion
of the Acquisition.



Informa is being advised by UBS Investment Bank in connection with the Placing.



Peter Rigby, Chairman of Informa, commented:



"I am delighted that we have had the opportunity to acquire MMS as this is a
business which we have long wished to combine with MCM. The business is in one
of our core markets, providing value added, must have information and analysis
to business customers on a subscription basis. As a leading provider of
information in the fixed income and foreign exchange markets, the addition of
MMS is expected to enable us to create one of the world's foremost authorities
for market commentary and analysis regarding the capital markets.



The acquisition is in line with our strategy of acquiring value-added
subscription services. Subscription businesses currently account for 33% of
Group revenues and around 43% of Group operating profit (pre goodwill
amortisation and exceptional costs). We see considerable growth opportunities
both organically and through acquisition in this area, with subscription
revenues becoming the dominant revenue stream for the business as we go
forward."





Contacts

Peter Rigby           Chairman

David Gilbertson     Chief Executive

Jim Wilkinson        Finance Director

Informa Group plc    020 7017 4302



Catherine Lees/Zoe Sanders, Bell Pottinger Financial 020 7861 3877



Alchemy Partners

Dominic Slade          020 7240 9596

Richard Oldworth, Buchanan Communications 020 7466 5000





Statements made in this release with respect to the Company's current plans,
estimates, strategies and beliefs and other statements that are not historical
facts are forward-looking statements about the future performance of the
Company. These statements are based on management's assumptions and beliefs in
light of the information currently available to it. The Company cautions you
that a number of important risks and uncertainties could cause actual results to
differ materially from those discussed in the forward-looking statements, and
therefore you should not place undue reliance on them.

The Company does not undertake any obligation to update any forward looking
statements discussed in this announcement, whether as a result of new
information, future events or otherwise.

This announcement does not constitute an offer of securities for sale in the
United States. The Placing Shares have not been and will not be registered under
the United States Securities Act of 1933, as amended (the "Securities Act"), and
may not be offered or sold in the United States absent registration or an
exemption from registration under the Securities Act. Any public offering of
securities in the United States will be made by means of a prospectus that will
contain detailed information about the Company and the management, as well as
financial statements. Such prospectus may be obtained from the Company.



UBS is acting for Informa in connection with the Placing and no one else and
will not be responsible to anyone other than Informa for providing the
protections offered to clients of UBS nor for providing advice in relation to
the Placing.



Nothing in this press announcement should be construed as or be interpreted to
mean that the earnings per share of Informa for the current or future years will
necessarily match or exceed the historical or published earnings of Informa.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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