Index provider S&P Global has confirmed it will acquire data and analytics provider IHS Markit after agreeing to terms of a major $44 billion deal.
The transaction is expected to close in the second half of 2021 and is subject to customary closing conditions. It has been unanimously approved by the boards of directors of both companies however it remains subject to approval from shareholders.
Upon completion, S&P Global shareholders will own around 67.75% of the combined company on a fully diluted basis, while IHS Markit shareholders will keep the remaining 32.25%.
Douglas Peterson, current president, and chief executive officer of S&P Global, will assume the role of chief executive of the combined company, and Lance Uggla, chairman, and chief executive officer of IHS Markit, will stay on as a special advisor to the company for one year once the deal closes.
“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,” said Peterson.
“We are confident that the strengths of S&P Global and IHS Markit will enable meaningful growth and create attractive value for all stakeholders. We have been impressed by the IHS Markit team and look forward to welcoming the talented IHS Markit employees to S&P Global.”
The combined company will provide comprehensive solutions across data, platforms, benchmarks, and analytics in ESG, climate, and energy transition, said IHS Markit.
“Our highly complementary products will deliver a broader set of offerings across multiple verticals for the benefit of our customers, employees, and shareholders,” added Uggla. “Our cultures are well aligned, and the combined company will provide greater career opportunities for employees. We look forward to bringing together our teams to realise the potential of this combination.”