IHS and Markit $13bn merger gets green light

12 July 2016

Shareholders and bondholders approved on Monday a merger between IHS and Markit in a deal worth $13bn.

Insight and analytics company IHS and financial information services company Markit announced an “all-share merger of equals” in March. The boards of both companies have already approved the merger.

More than 99% of the Markit and IHS stockholders who voted were in favour of the proposal, the two companies said in a statement.

The merger is expected to be completed today and the combined company, IHS Markit, could start trading on Nasdeq under the banner INFO as soon as Wednesday.

The two companies hope to see efficiency savings of $125m by the end of 2019 by “integrating corporate functions, reducing technology spend… using centres of excellence in cost-competitive locations, and optimising real estate and other costs”.

The merger is also expects to create $100m in revenue opportunities by 2019.

“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…The combination will enhance cash flow and enable stronger returns of capital to shareholders,” said Lance Uggla, chairman and CEO of Markit.

While Markit focuses on financial services, IHS offers expertise in oil and gas, chemical, automotive and electronics industries. The two companies expect no overlap in their business.

If the merger goes ahead, IHS shareholders will own 57% and Markit shareholders 43% of the new IHS Markit shares.

Based on IHS and Markit stock prices at the close on 18 March, the implied equity value of the merger is expected to be $13bn. 

IHS Markit will be London based, with key operations in Colorado. 

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