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