{"id":389275,"date":"2020-11-30T06:03:31","date_gmt":"2020-11-30T11:03:31","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=389275"},"modified":"2020-11-30T06:03:31","modified_gmt":"2020-11-30T11:03:31","slug":"sp-global-and-ihs-markit-to-merge-in-all-stock-transaction-valuing-ihs-markit-at-44-billion-powering-the-markets-of-the-future","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/sp-global-and-ihs-markit-to-merge-in-all-stock-transaction-valuing-ihs-markit-at-44-billion-powering-the-markets-of-the-future\/","title":{"rendered":"S&P Global and IHS Markit to Merge in All-Stock Transaction Valuing IHS Markit at $44 Billion, Powering the Markets of the Future"},"content":{"rendered":"
\n

– Joins Two World-Class Organizations with Unique, Highly Complementary Assets to Enhance Customer Value Proposition<\/h2>\n

– Combined Company to Benefit from Increased Scale and Mix Across Core Markets with Attractive Growth Adjacencies<\/h2>\n

– Expected to be Accretive to Earnings by the End of the Second Full Year Post-Closing with ~$480 Million of Annual Run-Rate Cost Synergies and ~$350 Million of Revenue Synergies<\/h2>\n

– Pro Forma Company to Target Capital Return of at Least 85% of Free Cash Flow<\/h2>\n

– Companies to Host Conference Call Today at 8:15 a.m. ET \/ 1:15 p.m. GMT<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n NEW YORK<\/span> and LONDON<\/span>, Nov. 30, 2020<\/span> \/PRNewswire\/ —\u00a0S&P Global (NYSE: SPGI) and IHS Markit (NYSE: INFO) today announced they have entered into a definitive merger agreement to combine in an all-stock transaction which values IHS Markit at an enterprise value of $44 billion<\/span>, including $4.8 billion<\/span> of net debt. The transaction brings together two world-class organizations, a unique portfolio of highly complementary assets in attractive markets and cutting-edge innovation and technology capability to accelerate growth and enhance value creation. <\/p>\n

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%.<\/p>\n

S&P Global and IHS Markit’s unique and highly complementary assets will leverage cutting-edge innovation and technology capability, including Kensho and the IHS Markit Data Lake, to enhance the customer value proposition and provide the intelligence customers need to make decisions with conviction. Serving a global customer base across financial information and services, ratings, indices, commodities and energy, and transportation and engineering, the pro forma company will provide differentiated solutions important to the workflows of many of the world’s leading companies.<\/p>\n

The transaction creates a pro forma company with increased scale, world-class products in core markets and strong joint offerings in high-growth adjacencies, including private assets, small and medium enterprises (“SME”), counterparty risk management, supply chain and trade and alternative data. Combined, the two companies will provide comprehensive solutions across data, platforms, benchmarks and analytics in ESG, climate and energy transition.<\/p>\n

\n Douglas Peterson<\/span>, President and Chief Executive Officer of S&P Global, will serve as CEO of the combined company. Lance Uggla<\/span>, Chairman and Chief Executive Officer of IHS Markit, will stay on as a special advisor to the company for one year following closing. <\/p>\n

“Through this exciting combination, we are able to better serve our markets and customers by creating new value and insights,” said Mr. Peterson. “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. We have been impressed by the IHS Markit team and look forward to welcoming the talented IHS Markit employees to S&P Global.” <\/p>\n

“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,” said Mr. Uggla. “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. We look forward to bringing together our teams to realize the potential of this combination.”<\/p>\n

\n Strategic Rationale \u2013 Powering the Markets of the Future<\/b>\n <\/p>\n