S&P Global to Buy IHS Markit in All-Stock Deal Valued at $44 Billion
Posted on 11/30/2020
In 2020, many people refer data as the new oil. Listed data juggernaut S&P Global entered into a definitive merger agreement with IHS Markit in an all-stock transaction. IHS Markit is being valued at an enterprise value of US$ 44 billion, including US$ 4.8 billion of net debt. Under the terms of the merger agreement, which has been unanimously 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. 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%. The transaction is expected to close in the second half of 2021.
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. The pro forma company expects to have 76% recurring revenue.
In July 2016, IHS Inc. and Markit Ltd. completed its massive merger. Markit (started as Mark-it Partners) got its start as an independent source of credit derivative pricing. S&P Global divisions include S&P Global Ratings, S&P Global Market Intelligence, S&P Dow Jones Indices and S&P Global Platts.
Deal Advisors
Goldman, Sachs & Co. LLC is serving as lead financial advisor to S&P Global. Citi and Credit Suisse are also serving as financial advisors to S&P Global. Wachtell, Lipton, Rosen & Katz is serving as legal advisor to S&P Global. Morgan Stanley & Co. LLC is serving as lead financial advisor to IHS Markit. Barclays, Jefferies LLC and J.P. Morgan Securities LLC are also serving as financial advisors to IHS Markit. Davis Polk & Wardwell LLP is serving as legal advisor to IHS Markit.