Related Party Transactions |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | 11. Related Party Transactions Corporate expense allocations The amounts of related party expenses allocated to Informa Tech Digital Business from the Parent and its subsidiaries for the three months ended March 31, 2024 were $8.5 million and are recognized in general and administrative expenses in the unaudited condensed consolidated statements of income (loss) and comprehensive income (loss). There were no such expense allocations for the three months ended March 31, 2025. Further, for the three months ended March 31, 2024, the Parent incurred $6.1 million of costs related to the Transactions described in Note 1 – Business overview and basis of presentation. Revenue and other transactions entered into in the ordinary course of business Informa TechTarget enters into revenue arrangements in the ordinary course of business with the Parent and its affiliates, which resulted in recording revenue of $0.2 million and $0.1 million in the three months ended March 31, 2025 and 2024, respectively. The cost of revenues related to these sales between Informa TechTarget and the Parent were not material for the three months ended March 31, 2025 and 2024. Revolving line of credit On December 2, 2024, Informa TechTarget entered into a related party loan arrangement with the Informa Group Holdings Limited, which provides Informa TechTarget with a $250.0 million unsecured five-year revolving Credit Facility, which has been drawn upon as of March 31, 2025. Informa TechTarget has paid $1.9 million in certain fees related to the Credit Facility, which have been capitalized and included in other non-current assets. Amortization of these commitment fees into interest expense was $0.1 million for the three months ended March 31, 2025. On January 23, 2025, Informa TechTarget drew upon the Credit Facility in the amount of $135.0 million which remained outstanding as of March 31, 2025 and is classified as a long-term related party line of credit. Interest income and interest expense Interest income and interest expense on debt financing and cash pooling arrangements are recorded within interest income and interest expense on related party debt, respectively within the accompanying unaudited condensed consolidated statements of income (loss) and comprehensive income (loss) as follows:
The accrued interest expense related to long-term debt to Parent was $0.2 million as of March 31, 2025, and is recorded in related party payables within the accompanying unaudited condensed consolidated balance sheets. Related party receivables and payables Informa TechTarget has receivables and payables with the Parent arising from transactions entered into in the ordinary course of business with the Parent, such as related party sales, shared and corporate cost recharges, including payroll and employee related costs, acquisition and integration costs and central operating costs. Related party receivables and payables are recorded in the accompanying unaudited condensed consolidated balance sheets as follows:
Settlement patterns of related party payables vary from transaction to transaction and are repaid on a non-routine basis. Changes in related party receivables and payables are presented in operating activities in the unaudited condensed consolidated statement of cash flows. Transitional services agreement In connection with the Merger, Informa TechTarget entered into a transitional service agreement with Informa Group Limited to receive certain business support services for generally up to 18 months after the closing for a monthly fee of $1.8 million. These services include, but not limited to, IT services, accounting & financial services, HR & payroll services, property services, and business support services. For the three months ended March 31, 2025, Informa TechTarget had incurred $5.5 million for such services, which are classified within general and administrative expenses. As of March 31, 2025, $7.4 million has yet to be settled and is classified within related party payables. Reverse transitional services agreement In connection with the Merger, Informa TechTarget entered into a reverse transitional service agreement with Informa Group Limited to provide property services to the Parent for a fixed monthly fee. For the three months ended March 31, 2025, activities related to this service were $0.1 million, which has been recorded within related party receivable. |