Steve Monnington: The Dealmaker in July

Coins-Money-NEW-resized.jpg

Steve Monnington of Mayfield Media Strategies, runs the rule over the latest global exhibition deals.

 

I read Phil Soar’s feature ‘Don’t confuse me with the facts’ in last month’s EN with great interest, not least because we have brokered a lot of the emerging market deals he refers to.


Our antennae is generally good but I don’t ever remember saying that the low number of deals in China was because of lack of interest. I did say that the reduction in the number of deals was due to a combination of economic slowdown and high price expectations (and that the CFTC launching competitive shows certainly hasn’t helped) but there is a high level of interest from the many international players in China for deals that make sense.


One business that almost all of the acquisitive international buyers have been chasing is the China Digital Entertainment Expo (known as ChinaJoy), China’s largest exhibition for the gaming sector, but the high price expectations of the owners have been a barrier to doing a deal. However, Hangzhou Shunwang Technology Co has scooped the deal and will acquire 51 per cent for up to 575m RMB (approx £59.5m). Shunwang Technology is a Chinese quoted company providing entertainment software to internet cafes and is an exhibitor at ChinaJoy. The initial payment of 350m RMB represents a multiple of 27x 2015 EBIT.


This is more in line with an internet company valuation than the multiple range paid for exhibitions but Shunwang can afford to pay this as they are currently trading on a Price/Earning (PE) ratio of 81 and will raise up to 2bn RMB by placing new shares to fund this acquisition and other projects. As a reference point, Reed Elsevier’s PE ratio is currently 27 and UBM’s is 31.


It’s not hard to see why the owners accepted Shunwang’s offer over the traditional organisers and arguably they can also add a lot more value to the business. The question is whether the Alibaba/UBM tie-up earlier this year and now this deal, is the start of a trend of significant involvement in our sector by the tech companies.

Global travel and meetings

In the USA, private equity firm Wasserstein Partners acquired Northstar Travel Group, the leading provider of B2B information and events for the global travel and meeting industries, from the Wicks Group of Companies, another private equity firm who themselves acquired Northstar from BV Investment Partners in 2012.

 

Northstar owns Travel Weekly, TravelAge West, Business Travel News, Travel Weekly China, Incentive, M&C China and Web in Travel as well as more than 50 exhibitions in thirteen countries in retail travel, corporate travel, travel technology and the meetings industry. Wasserstein also owns Penton but the two businesses will be run independently.


Staying with the USA, UBM acquired Content Marketing Institute (CMI), organiser of Content Marketing World in Cleveland, Ohio, the leading event in the content marketing sector together with a number of supporting conferences and websites that serve the content marketing community.


Acquisitions in South Korea seem to be the preserve of Reed Exhibitions. Following their partnership with K.Fairs for Kormarine, Korea’s largest international maritime industry event in 2014, they have now acquired the Electronics Manufacturing Korea show and three Home Table Deco Fairs held in Daegu, Busan and Seoul from the same partner.

Annie Byrne
Posted by Annie Byrne
PopularComments
Twitter Facebook Google+ LinkedIn

Related Stories

AEO and SISO launch Independent Organiser Network

The Association of Event Organisers (AEO) and the Society of Independent Show Organizers (SISO) have entered into a reciprocity agreement following a meeting between their members last month.

Future releases interim results

Group revenue is up for media platform Future plc, which has released its financial results for the six-month period ending 31 March 2017.

ITE Group publishes interim results

ITE Group, the international exhibitions group, has announced interim results and the results of a strategy and business review.

Others on EN

Show or tell?

Show or tell?

Roopi Woodall, marketing manager at the QEII Centre, asks if the art of conversation on social media is dead – and how to engage with audiences if that’s the case.
You get what you ask for

You get what you ask for

Sue Berry, managing director at TimelessTime Ltd, discusses the importance of people metrics and measurable objectives.
The Anti Cyber Attack Checklist

The Anti Cyber Attack Checklist

Following the global cyber attack on 12 May, event tech supplier RefTech has compiled a checklist for individuals and companies to follow to help them reduce the risk of future attacks.

EN Awards Highlights

silverstream.tv

Most Read Stories

Fit for the 21st century

Fit for the 21st century

Andrew Harrison, ESSA director, says we should always fight to bring talent into the industry and encourage an appetite for success.
I'm a believer

I'm a believer

Sam Cande, group commercial director at Centaur Media, says no secret sales technique can compete with belief in a product.
Lourda Derry: Making the connection

Lourda Derry: Making the connection

Lourda Derry, director of Easyfairs UK addresses the science behind operations and the profile of our audiences.

Latest News

AEO and SISO launch Independent Organiser Network

AEO and SISO launch Independent Organiser Network

The Association of Event Organisers (AEO) and the Society of Independent Show Organizers (SISO) have entered into a reciprocity agreement following a meeting between their members last month.
BRICKLIVE to partner with Toys R Us

BRICKLIVE to partner with Toys R Us

Lego event BRICKLIVE has announced a new partnership with toy megastore chain Toys R Us, which will be hosting a pop-up at the show.
First five shows confirmed for Farnborough

First five shows confirmed for Farnborough

National Pet Show, Home Building & Renovating and more have been confirmed by Farnborough International Exhibition & Conference Centre, which will open in early 2018.

Latest Features

Students: Pests or guests?

Students: Pests or guests?

It’s a question all organisers have to address – what should my show’s relationship with students look like?
Flying the nest

Flying the nest

Ever thought about going freelance? Do you have what it takes to go solo? Three event professionals tell EN their stories of building their own businesses.
Spreading the word

Spreading the word

With Global Exhibitions Day just a couple of months away, EN asks what three global exhibition associations are doing to celebrate this year.

Latest Galleries

Grand Designs Live 2017

Grand Designs Live 2017

The 13th edition of Media 10’s Grand Designs Live returned to ExCeL London from 29 April to 7 May, featuring more than 500 exhibitors across six key sections. Grand Designs star Kevin McCloud one again hosted the nine-day exhibition.
Insomnia60

Insomnia60

Over 50,000 video game fans from across the country descended on Birmingham’s NEC on 14-17 April for Insomnia60, the UK’s largest gaming festival.
A sneak peak at Somerset House's new event space

A sneak peak at Somerset House's new event space

Some of the industry’s leading event organisers were treated to an exclusive preview of Somerset House’s largest and most versatile indoor event space at an open house event on 19-20 April.