Data giant S&P Global Inc. (SPGI) has agreed to acquire information and analytics company IHS Markit Ltd. (INFO) in an all-stock deal, the two companies said Monday.
The deal values IHS Markit at an enterprise value of $44 billion, including $4.8 billion of net debt. Shares of IHS Markit are gaining almost 6 percent following the news.
The deal, the biggest in 2020, combines two major data providers in the highly competitive market for financial information.
Under the terms of the deal approved by the boards of directors of both companies, each share of IHS Markit common stock will be exchanged for a fixed ratio of 0.2838 shares of S&P Global common stock. The transaction is expected to close in the second half of 2021.
New York-based S&P Global is a provider of ratings, benchmarks, analytics, and data to the capital and commodity markets worldwide. The company, formerly known as McGraw Hill Financial, changed its name to S&P Global in April 2016.
IHS Markit, based in London, is an American-British information provider formed in 2016 following the merger of IHS Inc. and Markit Ltd. The company provides critical information, analytics, and solutions for various industries and markets worldwide.
The combined entity, to be headquartered in New York, will serve a global customer base across financial information and services, ratings, indices, commodities and energy, and transportation and engineering.
Upon completion of the transaction, current shareholders of S&P Global will own about 67.75 percent of the combined company, while IHS Markit shareholders will own the remaining 32.25 percent stake.
The combined company expects to deliver annual run-rate cost synergies of about $480 million. S&P Global expects the deal to add too its earnings by the end of the second full year following closing of the deal.
Douglas Peterson, President and Chief Executive Officer of S&P Global, will serve as CEO of the combined company. Lance Uggla, Chairman and Chief Executive Officer of IHS Markit, will stay on as a special advisor to the company for one year following closing.
Among other similar major deals, London Stock Exchange Group Plc. (LSE.L) said last week that it expects to complete the $27 billion acquisition of data provider Refinitiv in the first quarter of 2021.
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