Another day, another large merger. IHS and Markit have today announced the signing of a definitive agreement for the companies to combine in an all-share merger of equals to create a global leader in critical information, analytics and solutions. The implied equity value of the transaction – which has been unanimously approved by the Board of Directors of each company – is more than US$13 billion.
The combined company will be renamed IHS Markit, will be headquartered in London and have certain key operations based in Englewood, Colorado. IHS shareholders will own approximately 57 percent and Markit shareholders will own approximately 43 percent of the combined company on a fully diluted basis.
IHS shareholders will receive 3.5566 common shares of IHS Markit for each share of IHS common stock
Jerre Stead, IHS Chairman and CEO, said: “This transformational merger brings together two information-rich companies to create a powerful provider of unique business intelligence, data and analytics to a broad and complementary customer base. IHS Markit and its shareholders will benefit from enhanced product innovation to deliver strong returns across economic cycles. Importantly, the two companies are values-based organisations that have a strong cultural fit which focuses on customer satisfaction and colleague success.”
Lance Uggla, chairman and CEO of Markit, said: “The combination will enhance cash flow and enable stronger returns of capital to shareholders.”