Jul. 2 at 1:27 PM
$TTGT there history here is last year, in order to get the transaction approved, Informa said their business generated over
$40M of EBITDA in 2023 and the combined entity would generate over
$120M in EBITDA in 2025. Now that the transaction has been completed the CEO, who came from Informa, has revised Informa's 2023 EBITDA down to
$20M and is now guiding to a combined ~
$85M in 2026 EBITDA.
This new
$85M EBITDA number is notably inclusive of an assumed ~
$10M in achieved synergies, meaning the core business will actually only achieve
$75M in EBITDA in a good case scenario. Almost all of this is from the legacy TTGT businesses - Informa offloaded a terrible business and it is now a noose
This is a very British strategy, seen in transactions like RTO, in which an inept London based company will claim a pyric victory by firing a bunch of (American) people while destroying the acquired business and pat themselves on the back for achieving synergy goals even though the stock has tanked
