IHS and Markit to merge
Data providers IHS and Markit have agreed an all-share merger of equals, with the transaction expected to close in the second half of 2016.
The “implied” equity value of the transaction is more than $13 billion and the deal has been “unanimously approved” by the board of directors of each company.
Jerre Stead, IHS chairman and CEO, hails the merger and says both organisations have a “strong cultural fit”.
Upon completion of the merger, the combined company will be renamed IHS Markit and will be headquartered in London and have certain key operations based in Englewood, Colorado.
IHS shareholders will own approximately 57% and Markit shareholders will own approximately 43% of the combined company on a fully diluted basis.
The combined company’s reported results for fiscal year 2015 include approximately $3.3 billion in revenue, $1.2 billion in adjusted earnings before interest, taxes depreciation and amortisation (EBITDA), and $800 million in free cash flow.
Stead will assume the role of chairman of the board of directors and CEO of IHS Markit, while Lance Uggla, chairman and CEO of Markit, will be president and a member of the board of directors.
Uggla will assume the role of chairman of the board of directors and CEO of IHS Markit upon Stead’s retirement on 31 December 2017.
The board of directors of the combined company will be comprised of 11 members, with IHS designating six members (including the chairman) and Markit designating five members (including the lead director) from their current boards.