(Reuters) - TechTarget on Wednesday agreed to combine with London-based events organizer Informa's digital businesses in a deal to expand its portfolio and diversify revenue streams, the companies said on Wednesday.
Informa will contribute its Informa Tech digital businesses and $350 million in exchange for a 57% stake in the combined company, while TechTarget shareholders will get $11.79 per share and retain the rest of the stake, the statement said.
"The combination brings scale benefits, diversified revenue streams and strategic expansion opportunities by expanding TechTarget's current addressable market," the companies added.
Shares of TechTarget were up 15% in extended trading on Wednesday. The stock lost 21% of its value in 2023.
Informa Tech's digital businesses include technology research firm Omdia, a portfolio of digital media brands, including InformationWeek, Network (LON:NETW) Computing and AI Business.
The combined company, which will be headquartered in Newton, Massachusetts, is expected to have more than 8,600 customers in over 20 countries, and likely increase TechTarget's current addressable market by more than 10 times, according to the statement.
Informa Tech's current CEO Gary Nugent will take helm at the newly formed company. The deal is expected to close in the second half of 2024, subject to approvals.