PARIS: Ratings giant S&P Global said Monday that it had agreed to an all-stock merger with IHS Markit that values the data and analysis firm at US$44 billion.
“Through this exciting combination, we are able to better serve our markets and customers by creating new value and insights,” said Douglas Peterson, the chief executive of S&P Global and who will serve as CEO of the combined company.
S&P is best known for its ratings business, while IHS Markit for its purchasing manager surveys that are an advance indicator of economic activity, as well as its military and security information subsidiary Jane’s Information Group.
“This merger increases scale while rounding out our combined capabilities, and accelerates and amplifies our ability to deliver customers the essential intelligence needed to make decisions with conviction,” Peterson said.
The merger will create a US$126 billion financial services behemoth that will be headquartered in New York.
S&P shareholders will own nearly 68% of the new company, while shareholders in UK-headquartered IHS Markit will own the rest.
The firms said they expect the merger to generate some US$680 million in synergies by the end of the fifth full year after closing, which is expected in the second half of next year.
They said the merger should be positive for earnings by the end of the second year after closing.