Holdings for $40 billion in September, and Nippon
Telegraph & Telephone acquisition of a subsidiary
for nearly that much in the same month.
The newcomer IHS Markit is being acquired by
a company with roots dating back to the 19th
century, when Henry Varnum Poor published the
History of the Railroads and Canals of the United
States to provide transparency for investors.
IHS Markit has more than 50,000 business and
government customers, including 80% of the
Fortune Global 500 and the world’s leading
financial institutions.
Each share of IHS Markit common stock will be
exchanged for a fixed ratio of 0.2838 shares of S&P
Global stock. Current S&P Global shareholders
will own approximately 67.75% of the combined
company, while shareholders of IHS Markit, based
in London, will own about 32.25%.
The transaction puts IHS Markit’s enterprise value
at $44 billion, including $4.8 billion of debt.
The combined company will be headquartered
in New York, where S&P Global is based, with
a substantial presence in key global markets
across North America, Latin America, EMEA and
Asia Pacific.
Douglas Peterson, the CEO of S&P Global, will
hold that title at the combined company. Lance
Uggla, Chairman and CEO of IHS Markit, will
become a special advisor to the company for a
year after the deal closes.
The transaction is expected to close in the
second half of next year. It needs the approval of
both companies’ shareholders.
Shares of IHS Markit rose more than 7%, S&P
Global’s stock was essentially flat.