31 Mar Markit and IHS announce USD 13bn merger of equals
Data providers Markit and IHS announce a merger of equals “to create a global leader in critical information, analytics and solutions” according to a press release by Markit.
The new combined company will be called IHS Markit and will be headquartered in London, while still keeping significant operations in Englewood, Colorado. The combined market capitalisation of the new company will be around USD 13bn (EUR 11.5bn). IHS shareholders will hold approximately 57%, while Markit shareholders will hold approximately 43% of the combined company on a fully diluted basis. Both companies’ board of directors unanimously approved the merger.
The new combined company’s reported financial results for fiscal year 2015 include around: USD 3.3bn in revenue, USD 1.2bn in adjusted earnings before interest, taxes depreciation and amortisation (EBITDA), and USD800m in free cash flow.
IHS Chairman and CEO, Jerre Stead, believes that, “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.”
Markit Chairman and CEO, Lance Uggla, stated that, “at the heart of our shared vision is the opportunity to offer our customers a broader and richer content set through both existing and new products that will support their critical decision making and manage regulatory change.”
Jerre Stead will assume the role of chairman and CEO of the new IHS Markit, while Lance Uggla will be president and a member of the board of directors. Uggla will take on the role of chairman and CEO of IHS Markit upon Stead’s retirement on 31 December 2017.
The merger transaction is expected to close in the second half of 2016, subject to customary closing conditions.
