There had been rumblings for some time that Emerald Expositions, owners and operators of CEDIA Expo, KBIS, and myriad other tradeshows, was exploring a potential sale. Today, we got confirmation that those rumblings were in fact true. Emerald and research and events platform Questex were acquired by private equity firm Apollo Global Management, Inc., in an all-cash deal, according to a press release.
Once approved and finalized, Apollo said it plans to take Emerald private. Apollo indicated that the transaction should be completed, pending regulatory approvals, in the second half of this year.
“As AI and digital tools rapidly expand the ways professionals connect and share information, they are simultaneously elevating the value of trusted, in-person gatherings, where industries come together to do business, build relationships, and make consequential decisions,” Shahid Bosan, Managing Director at Apollo, said in the statement. “Bringing together Emerald and Questex would create a scaled, highly complementary platform that is well positioned to capture that demand. We believe the combined business will benefit from the strength of both organizations’ teams, differentiated content, deep customer relationships, and proven 365-day engagement model, giving the platform a distinct ability to serve its communities year-round and drive sustained growth.”
Anyone familiar with private equity transactions and the lead up to them could probably have seen the writing on the wall with regard to Emerald’s potential sale. When a company is looking to sell, they often take steps to “streamline” the business in order to make it appear like a solid investment. The streamlining in this case saw a number of seasoned editors across myriad books of business let go from the company, including CE Pro’s most veteran staff over the past year.
Then, there was the news earlier this year that Emerald abruptly and indefinitely postponed the CE Pro-hosted Total Tech Summit without so much as a public announcement.
Now, the expo giant, just a few months prior to CEDIA Expo, will experience a leadership transition at a time when the show is in need of a jolt.
“Over the past several years, we have transformed the portfolio with a clear focus on higher-growth, market-leading brands, building a more diversified mix of events and the strongest portfolio in our history,” Hervé Sedky, President and Chief Executive Officer of Emerald, said in the statement. “We believe the acquisition by Apollo Funds and the subsequent combination with Questex will provide the enhanced resources, strategic support, and long-term capital to accelerate our growth and deliver lasting value for our customers, employees, and stakeholders.”
A Tepid Industry Reaction
Mixed bag of reactions from the CEDIA channel, as you’d expect. The comment sections in the CEDIA Pros Facebook group and on LinkedIn offer a glimpse into the uneasiness and impatience attendees, manufacturers, and others have felt over the past few years with regard to the worsening vibe at the show. Some see this news as another obstacle towards rekindling the enthusiasm around CEDIA Expo, while others believe the injection of some private equity funding could lead to that desired result—assuming Apollo wants to invest in an event that’s experienced dwindling attendance and exhibitor participation.
One thing that’ll be interesting to follow in all of this is how the sale of Emerald impacts CEDIA’s ongoing attachment to the event moving forward. The association, which still manages to put on an incredible education conference alongside the Expo that bares its name, might have an opportunity to step up its own tradeshow game or could perhaps look to bring the Expo back under its own umbrella. Since the sale of Expo to Emerald back prior to the COVID era, CEDIA has had its hands tied in terms of its influence over the Expo itself and its ability to host other Expo-esque events.
No word on how the sale of Emerald will impact those opportunities moving forward, but this certainly feels like an opportunity for the association to explore some new horizons.
