IHS Markit to acquire Ipreo, sell MarkitSERV derivatives business

IHS Markit will buy Ipreo from Blackstone and Goldman Sachs Merchant Banking Division for $1.9 billion.

IHS Markit has agreed to buy rival data company Ipreo for $1.9 billion, while initiating the process to sell derivatives processing business MarkitSERV.

The firm will acquire Ipreo from private equity funds managed by Blackstone and Goldman Sachs Merchant Banking Division, which acquired Ipreo in 2014 for $975 million. The deal is expected to close in the second half of the year pending regulatory approval.

“Ipreo has an extremely strong brand in financial markets and its services are a logical and highly complementary extension to our financial services business and our customer base,” said Lance Uggla, CEO of IHS Markit.

“Across multiple product lines, we will deliver a more comprehensive service that will allow clients to streamline their workflow and make quicker and better decisions. We are excited to expand our footprint in the rapidly growing alternatives sector.”

Ipreo is currently based in New York and employs more than 1,700 people. Scott Ganeles, CEO of Ipreo, commented that the acquisition marks the coming together of “two strong organisations” for the benefit of both firms’ clients.

“IHS Markit will be a tremendous partner as we continue to build on our position as a leading provider to global capital markets participants,” Ganeles said.

IHS Markit added that following a detailed review of the financial services business as part of its capital allocation strategy, it has also begun the process of selling off its derivatives business MarkitSERV.

MarkitSERV provides end-to-end processing and workflow services across over the counter (OTC) derivatives asset classes, including credit, equity, foreign exchange (FX) and interest rates.