Technology research firm IHS and Markit, a financial information and services company, announced an all-share merger March 21.
The transaction is believed to be worth more than $13 billion and has already been approved unanimously by both companies’ boards of directors. IHS shareholders will own approximately 57% of the combined company, receiving more than 3.5 common shares of IHS Markit for each share of IHS stock. IHS stock was up nearly 10% to $121 in late-afternoon trading.
The new company will be renamed IHS Markit and will be headquartered in London.
“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,” said Jerre Stead, IHS chairman and CEO, in a statement. Stead will assume chairman and CEO roles of the combined company. “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 organizations that have a strong cultural fit which focuses on customer satisfaction and colleague success.”
Lance Uggla, chairman and CEO of Markit, added: “This is an exciting transaction for customers, employees and shareholders of IHS and Markit. Together, we will create a global information powerhouse and a platform for innovation that drives future revenue. 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. The combination will enhance cash flow and enable stronger returns of capital to shareholders.” Uggla will become president of the new company.