S&P Global agreed to acquire IHS Markit in an all-stock deal valued at $44 billion, the companies jointly announced Monday in a news release.
S&P will assume $4.8 billion of IHS debt as part of the transaction. Once the deal closes, current shareholders of S&P Global will own 67.75% of the combined company, while IHS Markit shareholders will own 32.25%. The transaction is expected to close in the second half of 2021. The C$456.7 billion ($348.7 billion) Canada Pension Plan Investment Board, Toronto, has a roughly 6% ownership stake in IHS Markit.
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 adviser to the company for a year following closing.
"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," said Mr. Peterson in the release, adding that he is "confident that the strengths of S&P Global and IHS Markit will enable meaningful growth and create attractive value for all stakeholders."
The combined company's board will include the current S&P Global board and four directors from the IHS Markit board. Richard Thornburgh, current chairman of S&P Global, will serve as chairman of the combined company.
Ewout Steenbergen, executive vice president and chief financial officer of S&P Global, will serve as chief financial officer of the combined company. Senior leaders from both organizations will make up the leadership team of the combined firm.