S&P Global to acquire information provider IHS Markit for $44bn

S&P Global acquisition of IHS Markit : S&P Global, a US financial information and analytics provider, has agreed to acquire London-based information provider IHS Markit in an all-stock deal worth $44 billion, which includes $4.8 billion of net debt.

IHS Markit provides critical information, analytics and solutions for the major industries and markets across the world. The company is said to have more than 50,000 business and government customers, which includes 80% of the Fortune Global 500 and some of the major global financial institutions.

S&P Global, on the other hand, provides credit ratings, benchmarks, and analytics in the global capital and commodity markets.

As per the terms of the merger deal, each share of IHS Markit will be exchanged for 0.2838 shares of S&P Global.

Following the closing of the deal, S&P Global’s current shareholders will own nearly 67.75% of the combined company, while IHS Markit shareholders will own around 32.25%.

S&P Global acquisition of IHS Markit. Photo courtesy of IHS Markit.

Commenting on S&P Global acquisition of IHS Markit, Douglas Peterson – S&P Global’s president and CEO said: “Through this exciting combination, we are able to better serve our markets and customers by creating new value and insights.

“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.

“We are confident that the strengths of S&P Global and IHS Markit will enable meaningful growth and create attractive value for all stakeholders.”

Douglas Peterson will be the CEO of the combined company.

Lance Uggla – Chairman and CEO of IHS Markit, commenting on S&P Global acquisition of IHS Markit, said: “This transaction is a win for both IHS Markit and S&P Global as we leverage our respective strengths in information, data science, research and benchmarks.

“Our highly complementary products will deliver a broader set of offerings across multiple verticals for the benefit of our customers, employees and shareholders. Our cultures are well aligned, and the combined company will provide greater career opportunities for employees.”

The deal, which is likely to be wrapped up in the second half of 2021, is subject to shareholders’ approval of both the firms, antitrust and regulatory approvals, and meeting of customary closing conditions.