S&P/IHS merger creates research giant

London – The world of big data is getting bigger with S&P Global's $44 billion merger with IHS Markit.

The all-stock transaction includes $4.8 billion of net debt. Under terms of the deal, each share in London-based IHS will be exchanged for just under 0.3 shares of stock in New York-based S&P. When the deal is completed, current S&P shareholders will own approximately 67.75% of the combined firm, while IHS shareholders will own the remaining 32.25%.

S&P is the world's foremost provider of credit ratings, benchmarks and analytics in global capital and commodity markets. Its business units include Global Ratings, Global Market Intelligence, Dow Jones Indices and Global Platts.

IHS delivers next-generation information, analytics and solutions to customers in business, finance and government. IHS moved into the plastics and chemicals research field when it acquired Houston-based CMAI in 2011.

Douglas Peterson, S&P president and CEO, will serve as CEO of the combined company, which will be based in New York. IHS Chairman and CEO Lance Uggla will remain with the firm as special advisor for one year following closing, which is expected in the second half of 2021.

"Through this exciting combination, we are able to better serve our markets and customers by creating new value and insights," Peterson said in a 30 Nov news release. "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 have been impressed by the IHS Markit team and look forward to welcoming the talented IHS Markit employees to S&P Global," he added.

Uggla said in the release that the 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."