Informa, the UK-listed events and publishing group, is moving closer to a transformative deal. The company has agreed to buy rival events organiser Clarion for £2.24 billion, and analysts at Berenberg believe the deal could come with a major strategic twist: selling off its Taylor & Francis academic publishing division.
In a note to clients, Berenberg argued that the two moves together would simplify Informa into a business focused almost entirely on business-to-business (B2B) events. On the bank's estimates, events would account for 96% of Informa's adjusted operating profit, leaving investors with a much clearer picture of what the company does and where its growth comes from.
What's behind the deal?
Informa is one of the world's largest events organisers, running trade shows, conferences and exhibitions across industries like healthcare, technology and finance. Clarion, a privately held rival, organises events in sectors such as food, aviation and real estate. Buying Clarion would strengthen Informa's portfolio and expand its reach into new niches.
Taylor & Francis, meanwhile, is a well-known academic publisher with thousands of journals and books. It has been part of Informa for years, but it operates in a very different business from events. Publishing is capital-intensive and faces structural challenges, including pressure on library budgets and the shift to open-access models. Selling it would allow Informa to focus on what it does best and reduce complexity.
Berenberg's analysis suggests the two transactions could be complementary. The Clarion acquisition would add scale to the events business, while the Taylor & Francis sale would raise cash and sharpen the company's strategic focus. Together, they could turn Informa into what the bank calls a "pure B2B events play."
What does this mean for investors?
For everyday investors, the key takeaway is simplicity. A company with one clear business line is often easier to value and monitor than a conglomerate with unrelated divisions. If events become 96% of operating profit, investors would no longer need to track the fortunes of academic publishing alongside trade shows.
Berenberg also sees a potential earnings boost. The bank expects the Clarion purchase to add a low-single-digit lift to earnings per share in fiscal year 2027, with a bigger boost later if the company executes well. Over the full economic cycle, Berenberg projects mid-teens EPS growth, which would be a solid outcome for a company in a cyclical industry.
It's worth noting that Berenberg's estimates are just one bank's view. Actual results will depend on how quickly Informa integrates Clarion, how the events market performs, and whether the Taylor & Francis sale goes through at a good price. But the direction of travel is clear: Informa is betting that a focused events business will deliver steadier, more predictable growth.
Broader context
The move comes as the events industry rebounds from the pandemic, when lockdowns forced cancellations and pushed many organisers to experiment with virtual formats. In-person events have since recovered strongly, and companies like Informa are investing to capture that demand. The Clarion deal is part of a wider consolidation trend in the sector, as larger players buy smaller rivals to gain scale and cross-selling opportunities.
For UK investors, the news also fits into a broader story of corporate restructuring. Several large companies have recently announced plans to split up or sell divisions to focus on core strengths. These moves are often welcomed by the market because they can unlock value and make earnings easier to forecast.
Berenberg's note is one of several recent research pieces from the bank on UK and European companies. It has also commented on SSE's 2030 earnings targets and Sampo's premium growth, showing its focus on long-term earnings potential across sectors.
What to watch next
Investors will be watching for regulatory approval of the Clarion deal, as well as any formal announcement about the future of Taylor & Francis. Informa has already said it plans to separate the publishing arm, but the details—whether it will be sold outright or spun off to shareholders—remain to be seen.
The market reaction to the initial news was positive, with Informa shares rising as bond yields cooled and the deal was announced. The FTSE 100 also gained on the day, helped by the broader sentiment. You can read more about that in our coverage of the FTSE's rise and the Clarion deal.
For now, the message from Berenberg is that Informa's transformation could be a net positive for shareholders. A simpler business with strong cash generation and a clear growth path is often exactly what investors want to see. But as with any major deal, execution will be the key test.
