Informa Tech and TechTarget, two established media and data companies, have announced a proposed merger that would create a B2B data giant. The new company, to be called TechTarget, would offer a wide range of products and capabilities to B2B marketers in the technology sector.
The merger is subject to approval by TechTarget shareholders, but if it goes through, the combined entity will have access to a large pool of first-party data from individuals researching business technology purchases across various web properties, analyst firms, and digital platforms.
How did this merger come about?
Many of the B2B tech media brands involved in the proposed deal are well-known to B2B marketers and have a long history of mergers and acquisitions. Both Informa Tech and TechTarget have strategically acquired various properties over the years to build their portfolios.
Informa Tech's portfolio includes media brands such as Industry Dive, Information Week, Light Reading, and AI Business, as well as research firms Omdia and Canalys, and lead generation platform NetLine.
Meanwhile, TechTarget's portfolio includes over 150 websites, research firm Enterprise Strategy Group (ESG), and virtual events and video platform BrightTALK.
The value of audience data has increased significantly in recent years, especially for B2B marketers in the tech sector who prioritize buyer intent data. In response to this, both Informa Tech and TechTarget have developed their own solutions: TechTarget offers a buyer intent platform called Priority Engine, while Informa Tech has created IIRIS, a B2B customer data platform that collates and analyzes first-party data from its portfolio.
Why is first-party data important?
The proposed merger between Informa Tech and TechTarget reflects the growing importance of first-party data in the marketing industry. With the deprecation of third-party cookies, many media organizations are struggling to generate enough data to match the volume of third-party data.
Stephen A. Carter, Group Chief Executive at Informa, acknowledges this challenge and emphasizes the importance of scale in the statement announcing the merger.
"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 and on-demand B2B events," says Carter. "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."
According to Informa, the proposed merger would expand the total addressable market (TAM) of the new TechTarget by more than 10 times, enabling the company to reach a larger customer base and drive revenue and growth in new technology-enabled B2B markets.
Details of the proposed deal
The structure of the proposed deal is slightly more complicated than most acquisitions, as both Informa PLC and TechTarget are publicly traded entities.
Under the proposed deal, Informa PLC would contribute its Informa Tech digital businesses and $350 million in cash in exchange for a 57% stake in the new TechTarget. The new entity will keep the TechTarget name, its headquarters in Newton, Mass, and its TTGT ticker symbol. It will also be traded on the NASDAQ and classified as a Controlled Company. The new CEO will be Gary Nugent, who currently holds the same position at Informa Tech.
In conclusion, the proposed merger between Informa Tech and TechTarget would create a B2B data giant with a strong focus on first-party data. This reflects the increasing importance of first-party data in the marketing industry, and the new TechTarget will be well-positioned to serve B2B marketers in the technology sector with its broad range of products and capabilities.
Originally reported by Martech: https://martech.org/informa-tech-techtarget-merger-would-create-a-b2b-data-giant/
This article was written automatically by artificial intelligence. Please make us aware if you have any concerns about this automatically generated content.
