S&P Global to buy IHS Markit in $44bn deal

S&P Global has agreed to buy London-based IHS Markit in a deal that values the company at $44bn.

The credit ratings firm said on Monday that the all-share deal "brings together two world-class organisations, a unique portfolio of highly complementary assets in attractive markets and cutting-edge innovation and technology capability to accelerate growth and enhance value creation".

Under the terms of the merger agreement, which has been unanimously approved by the boards of directors of both companies, each share of IHS Markit common stock will be exchanged for a fixed ratio of 0.2838 shares of S&P Global common stock.

Once the deal completes, S&P Global shareholders will own around 67.75% of the combined company on a fully diluted basis, while IHS shareholders will own the rest.

The transaction is expected to be accretive to earnings by the end of the second full year after closing. S&P said the combined entity expects to deliver annual run-rate cost synergies of approximately $480m, with around $390m of those expected by the end of the second year after closing.

S&P president and chief executive officer Douglas Peterson said: "Through this exciting combination, we are able to better serve our markets and customers by creating new value and insights.

"This merger increases scale while rounding out our combined capabilities, and accelerates and amplifies our ability to deliver customers the essential intelligence needed to make decisions with conviction. We are confident that the strengths of S&P Global and IHS Markit will enable meaningful growth and create attractive value for all stakeholders. We have been impressed by the IHS Markit team and look forward to welcoming the talented IHS Markit employees to S&P Global."