IHS and Markit agree $13bn merger

UK data company Markit has agreed to merge with its US rival IHS in a deal valued at more than $13bn (£9bn).

The combined company will be renamed IHS Markit and will be headquartered in London, with certain key operations based in Englewood, California.

IHS shareholders will own around 57% while Markit shareholders will own the rest of the company on a fully-diluted basis.

IHS shareholders will receive 3.5566 common shares of IHS Markit for each share of IHS common stock, which based on the closing price of $110.71 on 18 March implies a per share price of Markit common shares of $31.13.

IHS chairman and chief executive officer Jerre Stead said: “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.

“IHS Markit and its shareholders will benefit from enhanced product innovation to deliver strong returns across economic cycles. Importantly, the two companies are values-based organisations that have a strong cultural fit which focuses on customer satisfaction and colleague success.”

The deal is expected to close in the second half of this year.