Business research provider IHS to buy Markit Ltd for $5.9 bn

Business research provider IHS Inc, publisher of Jane's Defence Weekly, today struck a deal to buy London-based financial data provider Markit Ltd for about $5.9 billion in stock.

IHS said the deal value implied a market price of $31.13 per Markit share, a premium of 5.6 per cent over its Friday closing price.

IHS shareholders will receive 3.5566 common shares of IHS Markit for each share of IHS common stock, which based upon the IHS closing price of $110.71 on 18 March, implies a per share price of Markit common shares of $31.13.

IHS shareholders will own about 57 per cent of the combined company, while Markit shareholders will own the remaining 43 per cent.

Post closing, the combined company will be renamed IHS Markit and will be based in London and have certain key operations in Englewood, Colorado.

HIS said that the combined company would create a global information powerhouse with leading positions in energy, financial services and transportation, and have a market cap of more than $13 billion.

The combined company's reported around $3.3 billion in revenue in fiscal 2015, $1.2 billion in adjusted earnings before interest, taxes depreciation and amortization (EBITDA), and $800 million in free cash flow.

IHS said that the merged company ''will be a leader in critical information, analytics and solutions, and will have non-overlapping customers and products, a strong financial profile and a world-class management team.''

''The company will also deliver next-generation information and analytics products to help customers improve decision making. IHS Markit will have more than 50,000 key customers, including 75 per cent of the Fortune Global 500, creating significant cross-selling opportunities across multiple commercial industries and governments,'' it added.

Founded in 2003 and listed on the Nasdaq, Markit is a global provider of financial information services.

Its customers include banks, hedge funds, asset managers, central banks, regulators, auditors, fund administrators and insurance companies.

IHS provides insight, analytics and expertise in critical areas of business.

IHS employs nearly 9,000 people in 32 countries around the world and provides independent analysis to businesses and governments in more than 140 countries around the globe.

Jerre Stead, IHS chairman and CEO, said, ''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.

Lance Uggla, chairman and CEO of Markit, said, ''Together, we will create a global information powerhouse and a platform for innovation that drives future revenue.''