S&P Global has agreed a deal to buy IHS Markit for $44 billion, creating a powerhouse in the provision of market data information services.
Upon completion of the transaction, current S&P Global shareholders will own approximately 67.75% of the combined company on a fully diluted basis, while IHS Markit shareholders will own approximately 32.25%.
IHS has a market value of around $36.88 billion based on the stock’s last close on Friday, Reuters calculations showed, with its share price up around 22% so far this year.
Douglas Peterson, president and Chief executive officer of S&P Global, will serve as CEO of the combined company. Lance Uggla, chairman and CEO of IHS Markit, will stay on as a special advisor to the company for one year following closing.
"Through this exciting combination, we are able to better serve our markets and customers by creating new value and insights," saysPeterson. "This merger increases scale while rounding out our combined capabilities, and accelerates and amplifies our ability to deliver customers the essential intelligence needed to make decisions with conviction."
He says the combined company intends to deploy well above $1 billion annually on technology and transition into adjacent markets, including ESG, climate and energy transition, private assets and SME, counterparty risk management, supply chain and trade, and alternative data.
Slated ror closure in the second half of 2021, the transaction likely be put under the microscope by competition watchdogs, as the global market for financial information services consolidates around a few mega-vendors.