S&P Global has reached an agreement to buy the data provider IHS Markit. The all-stock transaction has an enterprise value of $44 billion, including $4.8 billion of net debt, making it the largest announced merger of 2020.

Under the terms of the deal, S&P Global stockholders will exchange their shares at a fixed ratio. At closing, they will own 67.75% of the combined company. IHS Markit shareholders will own the remaining 32.25%. The chief executive officer of S&P, Douglas Peterson, will serve as CEO of the combined company. IHS Markit CEO Lance Uggla, will stay on as a special advisor to the company for one year following closing.

“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,” Douglas Peterson said in a statement. “We are confident that the strengths of S&P Global and IHS Markit will enable meaningful growth and create attractive value for all stakeholders.”

The companies said they expect annual cost synergies of about $480 million, with about $390 million coming at the end of the second year. They expect a total run-rate EBITA impact of approximately $680 million by the end of the fifth year.

After closing, the company will have its headquarters in New York. The board of the new company will include the current board of S&P Global along with four directors from the IHS Markit. S&P Chairman Richard Thornburgh will serve as the chairman.

S&P Global shares were up nearly 1.7% in midday trading Monday. IHS Markit shares were up more than 7%.

The deal is expected to close in the second half of 2021.

Imothy A. Clary/AFP via Getty Images

, , ,

Leave a Reply

Your email address will not be published. Required fields are marked *