Scoop: Industry Dive to sell to U.K.-based events firm Informa
Industry Dive, a Washington, D.C.-based business media company, has signed an agreement to be acquired by Informa, a publicly traded events and publishing company, for an enterprise value of $525 million, a source familiar with the deal told Axios.
Why it matters: It's a great outcome for Industry Dive, which has grown its business to over $100 million in annual revenue over the past 10 years.
By the numbers: The deal values Industry Dive at a cash value of $389 million, according to the source. That number doesn't include potential earn-outs based on revenue growth or equity that's being rolled over into the new company. The total enterprise value of the deal is $525 million, nearly 5x the company's annual revenue.
- Industry Dive is expecting roughly $110 million in revenue this year with a profit margin of 30%, according to a source familiar with its finances. The company has been profitable since 2013, the year after it was founded.
- Roughly 380 people work at Industry Dive, with around 115 of those employees working in editorial roles. All employees will remain as part of the deal.
- Industry Dive will continue to operate as an independent brand within Informa. Industry Dive's management team will remain the same, the source said.
Be smart: The deal gives Informa access to an in-house content arm that focuses on niche, professional audiences. It gives Industry Dive access to a wider set of audiences to expand its reach and launch new verticals.
- Industry Dive's newsletter products span 24 industries, including retail, food, supply chain and marketing.
- The company tends to focus on hyper-niche industries that were traditionally served by trade magazines. For example, it recently launched a vertical targeting corporate counsels and another targeting multi-family construction executives.
- Informa confirmed the deal Tuesday morning on its website.
Catch up quick: Industry Dive was co-founded in 2012 by chief executive officer Sean Griffey, chief technology officer Eli Dickinson and senior adviser Ryan Willumson.
- The company was bootstrapped until it sold a majority stake to Charlotte, North Carolina-based private equity firm Falfurrias Capital Partners in 2019.
- It has made three acquisitions to date, including the marketing arm of global tech firm NewsCred in 2019, a hyper-niche trade publication called PharmaVOICE in 2021 and CFO.com in 2021.
What's next: The deal is expected to close in September.