Media company Informa, UK, has confirmed that it is in talks to acquire German academic publisher Springer Science and Business Media. Informa, which owns specialist publishers such as Taylor & Francis and Routledge, has been given access to due diligence materials. UK private equity groups Candover and Cinven, which own Springer, have been reportedly looking to sell the whole business at a reduced valuation.
Informa has stated that it expects the acquisition – if it takes place - to generate significant synergy benefits from rationalisation of the combined cost base plus improved marketing and operating efficiencies. While the company declined to provide financial details, media reports put an equity value of about €400 million on the business. Analysts estimate Springer's debt to be around €2.1 billion.
The Informa acquisition move is seen as a role reversal – in 2006 it had rejected a $4.5 billion takeover bid by Springer.
Springer was formed in 2003 when Candover and Cinven merged BertelsmannSpringer with Kluwer Academic Publishing. The company’s owners were looking to land €500 million for up to 49 percent of the business, but initial offers came in closer to €400 million, as suitors worried about refinancing a heavy debt burden.
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