S&P Global in deal to buy IHS Markit

S&P Global is buying IHS Markit in a 44 billion US dollar (£32.9 billion) all-stock deal that brings together two of the largest data providers to Wall Street.

Each share of IHS Markit common stock will be exchanged for a fixed ratio of 0.2838 shares of S&P Global stock.

Current S&P Global shareholders will own approximately 67.75% of the combined company, while shareholders of IHS Markit, based in London, will own about 32.25%.

The transaction puts IHS Markit’s enterprise value at 44 billion dollars, including 4.8 billion dollars (£3.5 billion) of debt.

The combined company will be headquartered in New York, where S&P Global is based, with a substantial presence in key global markets across North America, Latin America, EMEA and Asia Pacific.

Douglas Peterson, the CEO of S&P Global, will hold that title at the combined company. Lance Uggla, chairman and CEO of IHS Markit, will become a special adviser to the company for a year after the deal closes.

The transaction is expected to close in the second half of next year. It needs the approval of both companies’ shareholders.

Data collection has become pivotal on Wall Street as algorithms and high-speed trading overtake the traditional picking of stocks. Growth has been explosive for companies that do it well.

IHS and Markit joined just four years ago to create a 13 billion dollar (£9.7 billion) company.

The newcomer IHS Markit is being acquired by a company with roots dating back to the 19th century.

IHS Markit has more than 50,000 business and government customers, including 80% of the Fortune Global 500 and the world’s leading financial institutions.