Wednesday, December 2, 2020
S&P Global and IHS Markit announced Nov. 30 they have entered into a definitive merger agreement to combine in an all-stock transaction that values IHS Markit at an enterprise value of $44 billion, including $4.8 billion of net debt. The transaction brings together two world-class organizations, a unique portfolio of highly complementary assets in attractive markets, and cutting-edge innovation and technology capability to accelerate growth and enhance value creation.
S&P Global is a provider of credit ratings, benchmarks, and analytics in the global capital and commodity markets, offering ESG solutions, deep data, and insights on critical business factors. IHS Markit is a world leader in critical information, analytics, and solutions for the major industries and markets that drive economies worldwide.
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. Upon completion of the transaction, current S&P Global shareholders will own approximately 67.75% of the combined company on a fully diluted basis, while IHS Markit shareholders will own approximately 32.25%.
S&P Global and IHS Markit’s unique and highly complementary assets will leverage cutting-edge innovation and technology capability, including Kensho and the IHS Markit Data Lake, to enhance the customer value proposition and provide the intelligence customers need to make decisions with conviction. Serving a global customer base across financial information and services, ratings, indices, commodities and energy, and transportation and engineering, the pro forma company will provide differentiated solutions important to the workflows of many of the world’s leading companies.
The transaction creates a pro forma company with increased scale, world-class products in core markets, and strong joint offerings in high-growth adjacencies, including private assets, small and medium enterprises (SME), counterparty risk management, supply chain and trade and alternative data. Combined, the two companies will provide comprehensive solutions across data, platforms, benchmarks, and analytics in ESG, climate, and energy transition.
Douglas Peterson, president and CEO of S&P Global, will serve as CEO of the combined company. Lance Uggla, chairman and CEO of IHS Markit, will stay on as a special advisor to the company for one year following closing.
“Through this exciting combination, we are able to better serve our markets and customers by creating new value and insights,” Peterson said. “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.”
“This transaction is a win for both IHS Markit and S&P Global as we leverage our respective strengths in information, data science, research and benchmarks,” Uggla said. “Our highly complementary products will deliver a broader set of offerings across multiple verticals for the benefit of our customers, employees, and shareholders. Our cultures are well aligned, and the combined company will provide greater career opportunities for employees. We look forward to bringing together our teams to realize the potential of this combination.”
SOURCE: The Weekly Propane Newsletter, December 2, 2020. Weekly Propane Newsletter subscribers receive all the latest posted and spot prices from major terminals and refineries around the U.S. delivered to inboxes every week. Receive a center spread of posted prices with hundreds of postings updated each week, along with market analysis, insightful commentary, and much more not found elsewhere.
S&P Global is a provider of credit ratings, benchmarks, and analytics in the global capital and commodity markets, offering ESG solutions, deep data, and insights on critical business factors. IHS Markit is a world leader in critical information, analytics, and solutions for the major industries and markets that drive economies worldwide.
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. Upon completion of the transaction, current S&P Global shareholders will own approximately 67.75% of the combined company on a fully diluted basis, while IHS Markit shareholders will own approximately 32.25%.
S&P Global and IHS Markit’s unique and highly complementary assets will leverage cutting-edge innovation and technology capability, including Kensho and the IHS Markit Data Lake, to enhance the customer value proposition and provide the intelligence customers need to make decisions with conviction. Serving a global customer base across financial information and services, ratings, indices, commodities and energy, and transportation and engineering, the pro forma company will provide differentiated solutions important to the workflows of many of the world’s leading companies.
The transaction creates a pro forma company with increased scale, world-class products in core markets, and strong joint offerings in high-growth adjacencies, including private assets, small and medium enterprises (SME), counterparty risk management, supply chain and trade and alternative data. Combined, the two companies will provide comprehensive solutions across data, platforms, benchmarks, and analytics in ESG, climate, and energy transition.
Douglas Peterson, president and CEO of S&P Global, will serve as CEO of the combined company. Lance Uggla, chairman and CEO of IHS Markit, will stay on as a special advisor to the company for one year following closing.
“Through this exciting combination, we are able to better serve our markets and customers by creating new value and insights,” Peterson said. “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.”
“This transaction is a win for both IHS Markit and S&P Global as we leverage our respective strengths in information, data science, research and benchmarks,” Uggla said. “Our highly complementary products will deliver a broader set of offerings across multiple verticals for the benefit of our customers, employees, and shareholders. Our cultures are well aligned, and the combined company will provide greater career opportunities for employees. We look forward to bringing together our teams to realize the potential of this combination.”
SOURCE: The Weekly Propane Newsletter, December 2, 2020. Weekly Propane Newsletter subscribers receive all the latest posted and spot prices from major terminals and refineries around the U.S. delivered to inboxes every week. Receive a center spread of posted prices with hundreds of postings updated each week, along with market analysis, insightful commentary, and much more not found elsewhere.
