Cornering the Markit

30 November 2020 By George Hay Follow @gfhay

The U.S. index giant has offered to buy its domestic rival for $44 billion including debt. The deal brings synergies and scale in the hot area of financial data, but the returns look skinny. And the premium is not big enough to see off a counter bid from the likes of ICE.

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S&P Global on Nov. 30 said it had agreed to buy data provider IHS Markit in an all-share deal, valuing the group at $44 billion including debt.

Under the terms of the deal, IHS Markit shareholders will receive 0.2838 S&P Global shares, and own 32.25% of the combined company.

The combined company expects to deliver annual run-rate cost synergies of approximately $480 million, with around $390 million of those expected by the end of the second year post-closing, and $350 million in run-rate revenue synergies for an expected total run-rate EBITA impact of approximately $680 million by the end of the fifth full year after closing.

S&P Chief Executive Doug Peterson will run the combined group, while Lance Uggla, currently chairman and CEO of IHS Markit, will stay on as a special adviser for one year after closing.

Thomson Reuters, parent of Breakingviews, has a stake in Refinitiv, which competes with S&P Global in providing financial data.

Context News

S&P Global on Nov. 30 said it had agreed to buy data provider IHS Markit in an all-share deal, valuing the group at $44 billion including debt.

Under the terms of the deal, IHS Markit shareholders will receive 0.2838 S&P Global shares, and own 32.25% of the combined company.

S&P Chief Executive Doug Peterson will run the combined group, while Lance Uggla, currently chairman and CEO of IHS Markit, will stay on as a special adviser for one year after closing.

Thomson Reuters, parent of Breakingviews, has a stake in Refinitiv, which competes with S&P Global in providing financial data.

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