By Paul Sandle
LONDON (Reuters) - Britain's Informa (INF.L) will achieve cost savings of at least 60 million pounds a year from its takeover of rival UBM (UBM.L), it said on Tuesday.
The 5.6 billion pound deal, which was announced last month, will create a global leader in business events and conferences, almost a decade after UBM tried to buy Informa.
About 60 percent of the combined group's 2.6 billion pounds in revenue will come from events ranging from the Game Developers Conference to the Monaco Yacht Show.
Confirming terms of the deal on Tuesday, Informa CEO Stephen A. Carter said the group would save at least 60 million pounds in annual costs by 2019 -- a figure seen by Liberum analysts as well within reach.
"We believe 60 million pounds is conservative, given UBM is a business that was seen as quite cost-heavy," the broker said.
Informa's share price had dipped when the deal was announced on Jan. 17, with analysts describing the 30 percent premium it was paying as "generous".
Informa will pay 1.083 new Informa shares and 163 pence in cash for each UBM shares under the terms of the deal.
Based on Informa's closing price on Monday, it will pay about 5.6 billion pounds in cash and stock for UBM's shares, representing a premium of 21 percent.
Informa's shares were up 1.5 percent at about 698 pence by 1107 GMT, while UBM was up 4.4 percent at 908 pence.
Carter, who will be chief executive of the combined group, said he would retain the other parts of Informa, including business intelligence and its academic publishing business Taylor & Francis. The group will employ about 11,000 people.
Its global exhibitions business achieved 7.6 percent growth in 2017, against between 0.1 percent and 2.2 percent for the other parts of its business, it said on Tuesday.
"(The other units) are on a growth trajectory and are all doing better this year than they were last year," Carter said.
(Editing by David Goodman)