S&P Global buys IHS Markit for $44bn

The deal is the largest so far this year, in any sphere.

The deal is the largest so far this year, in any sphere.


In a colossal deal for the financial information sector, ratings agency S&P Global has acquired UK-headquartered market data firm IHS Markit for $44 billion – the largest corporate acquisition in 2020 so far.

The deal, which includes nearly $5 billion in debt, is yet to be approved by shareholders, let alone regulators, who have been watching the financial data sector increasingly closely. S&P Global is already significantly larger than its two closest competitors, Moody’s and Fitch Ratings; buying IHS Markit, a behemoth on the financial data scene, will further strengthen S&P’s market dominance in the ratings world, and make it a serious competitor with Bloomberg as a financial data provider.

The deal has been in the pipeline for some months now; all the while, IHS Markit has been becoming more valuable, its stock beginning the year at $76 and reaching $93 before news of the acquisition broke. The acquisition dwarfs the second-largest deal in the financial data sector, the London Stock Exchange (LSE)’s acquisition of Refinitiv for $27 billion last year – a deal that continued to be scrutinized by European regulators, who are so far unhappy with LSE’s concessions.

IHS Markit is expected to generate $11.6 billion in annual revenue; S&P Global hopes that the acquisition will save it $480 million a year in costs, as well as giving the company $350 million in cross-selling opportunities.

Lance Uggla, who in 2003 founded Markit, the company that went on to merge with IHS, will stay on for a year as a special advisor; he will receive a $46 million windfall thanks to a change-of-control clause in his contract.

 

Legal advisor to S&P Global: Wachtell, Lipton, Rosen & Katz

Financial advisor to S&P Global: Goldman Sachs (lead), Citi, Credit Suisse Securities

Legal advisor to IHS Markit: Davis Polk & Wardwell

Financial advisor to IHS Markit: Morgan Stanley (lead), Jefferies, J.P. Morgan Securities

 

Arjun Sajip

Read the full Special Report: USA: Global Powerhouse

In a world where the only thing that doesn't change is change itself, opportunities and risks are too obvious to ignore, and the legal market is no exception. Worth over $400 billion and one of the most profitable in the world, the U.S. legal industry is under fundamental transformation. Whether you're an in-house counsel or a law firm, only those with far-ranging sights, clear thoughts and quick action can survive and thrive.
Summary Interview: Prakash Melwani (Chief Investment Officer, Blackstone) AstraZeneca buys Alexion Pharmaceuticals for $39bn Salesforce buys Slack for $27.7bn The Home Depot re-buys HD Supply for $9.1 billion PNC buys BBVA's US arm for $11.6bn “External consultants bring more cost-efficiency and innovation than internal marketing teams” Advanced Micro Devices buys Xilinx for $35bn Leading the way: Kamala Harris makes history What would a Biden presidency mean for the US and the world?

interview

Accenture's CEO and CFO interview by Leaders League Group

About us

Download

Ce site utilise des cookies. En continuant la navigation, vous acceptez nos conditions d'utilisation des cookies.
Plus d'informations

J'accepte