UK-founded financial data giant Markit is merging with US rival IHS to create “
a global leader in critical information, analytics and solutions” that will be headquartered in London.
The pair announced on Monday that they have reached “definitive agreement” for “an all-share merger of equals” to create a company with a combined market capitalisation of $13 billion.
The merged company will be renamed IHS Markit, with IHS shareholders taking 57% of the new company and Markit investors holding the rest.
Both businesses say they have identified $125 million worth of costs they can cut post-merger and revenue opportunities of $100 million. The combined company will also undertake a huge $1 billion share repurchase programme in both 2017 and 2018.
Jerre Stead, chairman and CEO of IHS, says in a statement: “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, the founder, chairman, and CEO of Markit, says: “This is an exciting transaction for customers, employees and shareholders of IHS and Markit. Together, we will create a global information powerhouse and a platform for innovation that drives future revenue.”