IHS to buy Lon­don-based Markit in all-stock deal

The Pak Banker - - 6BUSINESS -

NEW YORK: US busi­ness re­search provider IHS Inc said on Mon­day it would buy Markit Ltd in an all-stock deal valu­ing the Lon­don-based fi­nan­cial data com­pany at about $5.9 bil­lion. IHS share­hold­ers will own about 57 per­cent of the com­bined com­pany, which will be based in Lon­don and have a to­tal mar­ket value of more than $13 bil­lion.

IHS, whose busi­nesses in­clude Jane's De­fence Weekly and tech­nol­ogy re­search firm iSup­pli, will pay the equiv­a­lent of $31.13 per Markit share, a pre­mium of 5.6 per­cent to Markit's Fri­day close. En­gle­wood, Colorado-head­quar­tered IHS, which has been on an ac­qui­si­tion spree, said its share­hold­ers would get 3.5566 com­mon shares of the com­bined com­pany, IHS Markit, for each share held. Markit's top share­hold­ers in­clude U.S. equity firm Gen­eral At­lantic LLC, Sin­ga­pore state in­vestor Te­masek Hold­ings Pte Ltd and Canada Pen­sion Plan In­vest­ment Board.

IHS's en­ergy busi­ness, its big­gest divi­sion, pro­vides re­search on en­ergy and chem­i­cals, in­clud­ing global well, pro­duc­tion and field in­for­ma­tion to oil and gas com­pa­nies. How­ever, rev­enue in the busi­ness has been fall­ing as clients slash spend­ing in re­sponse to lower oil prices. Rev­enue in the divi­sion fell al­most 1 per­cent to $215.9 mil­lion in the first quar­ter ended Feb. 29.

Stronger-than-ex­pected to­tal rev­enue in quar­ter was helped by a jump in non-sub­scrip­tion rev­enue, which in­cludes or­ga­niz­ing in­dus­try events. IHS said in Jan­uary it would buy U.S.based Oil Price In­for­ma­tion Ser­vice (OPIS) to add real-time pric­ing in­for­ma­tion to its en­ergy an­a­lyt­ics busi­ness. The com­pany agreed in De­cem­ber to buy Canada-based ve­hi­cle data provider Carproof Corp for $460 mil­lion to boost its au­to­mo­tive re­search busi­ness.

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