Data firm IHS is to merge with Markit in a $13 billion deal that creates a global information powerhouse with leading positions in energy, financial services and transportation.
Under the terms of the transaction, IHS shareholders will own approximately 57% and Markit shareholders will own approximately 43% of the combined company. Between them, the two firms generated $3.3 billion in revenue, and $1.2 billion Ebidta for fiscal 2015.
The new company, which will have more than 50,000 key customers, including 75% of the Fortune Global 500 on its client roster, will be renamed IHS Markit and will be headquartered in London and have certain key operations based in Englewood, Colorado.
The two firms expect to realise cost synergies of $125 million by year-end 2019, driven by integrating corporate functions and reducing technology spend.
Lance Uggla, chairman and chief executive officer of Markit, says: “Together, we will create a global information powerhouse and a platform for innovation that drives future revenue. At the heart of our shared vision is the opportunity to offer our customers a broader and richer content set through both existing and new products that will support their critical decision making and manage regulatory change. The combination will enhance cash flow and enable stronger returns of capital to shareholders.”