Two market data giants just announced a $13 billion merger

Markit CEO Lance Uggla celebrates at the NASDAQ MarketSite in Times Square during the launch of the initial public offering (IPO) for Markit on June 19, 2014 in New York City. Markit, (Nasdaq:MRKT), is a financial information company which competes with Bloomberg and Thomson Reuters Corp. Markit said it priced its initial public offering at $24 per share and it's IPO has raised about $1.28 billion.Spencer Platt/Getty ImagesMarkit CEO Lance Uggla.

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.”

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