Financial research providers IHS and Markit are planning a merger valued at $13 billion.
The combined company will be rebranded as IHS Markit and be centred in London, but with key operations remaining in Englewood Colorado, where IHS is currently based.
The transaction has already been unanimously approved by the board of directors of both companies and is expected to be completed in the second half of 2016, following shareholder approval.
Markit and IHS shareholders will own approximately 43 percent and 57 percent respectively on a fully diluted basis. IHS Markit has already pledged to $2 billion of share repurchases over 2017 and 2018.
Jerra Stead, current IHS chairman and CEO, will assume the role of chairman of the board of directors and CEO of IHS Markit, while Lance Uggla, current Markit chairman and CEO, will be president and a member of the board of directors.
Uggla will assume the role of chairman of the board CEO of IHS Markit upon Stead’s retirement on 31 December 2017.
The board of directors of IHS Markit will be comprised of 11 members, with IHS designating six members (including the chairman) and Markit designating five members (including the lead director) from their current boards.
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.”
Uggla added: “This is an exciting transaction for customers, employees and shareholders of IHS and Markit. Together, we will create a global information powerhouse and a platform for innovation that drives future revenue.”
“At the heart of our shared vision is the opportunity to offer our customers a broader and richer content set through both existing and new products that will support their critical decision making and manage regulatory change. The combination will enhance cash flow and enable stronger returns of capital to shareholders.”
