(SPGI), (INFO) – S&P Global to Acquire IHS Markit for $ 44 Billion, Creating Wall Street Data Giant

S&P Global Inc. (NYSE: SPGI) confirmed Monday morning that it was in the process of acquiring IHS Markit Ltd. (NYSE: INFO) in a deal that values ​​the latter at $ 44 billion, including $ 4.8 billion in net debt.

What happened: The Wall Street Journal reported on the merger plans earlier on Sunday, citing people familiar with the matter.

The board of directors of the two companies unanimously approved the transaction. After the merger, the existing shareholders of S&P Global will control approximately 67.75% of the resulting company, while the stakeholders of IHS Markit will control approximately 32.25%.

As part of the transaction, each IHS Markit common share will be exchanged for 0.2838 S&P Global common share.

“We are confident that the strengths of S&P Global and IHS Markit will enable significant growth and create compelling value for all stakeholders,” said Douglas Peterson, President and CEO of S&P Global, in a statement sent. at Benzinga.

The financial services provider’s communications director, Dave Guarino, told Benzinga on Sunday that the company would “not comment on rumors or market speculation.”

“This transaction is a victory for IHS Markit and S&P Global as we leverage our respective strengths in information, data science, research and reference,” said IHS Markit CEO Lance Uggla .

Richard Thornburgh, current president of S&P Global, will also be president of the merged company.

Why is this important: The merger of the two companies will create a financial data giant.

Manhattan-based S&P Global and London-based IHS Markit are two of Wall Street’s largest providers of financial data and analytics.

S&P Global has a market valuation of $ 82.18 billion and IHS Markit is worth around $ 36.88 billion.

The two companies expect the resulting entity to generate annual cash flow of over $ 5 billion by 2023, while maintaining a strong balance sheet and credit profile.

They said pro forma annual revenue is expected to be over $ 11.6 billion for the new company and will target 200 basis points of annual EBITDA margin expansion.

Price action: S&P Global shares were down 1% to $ 338 in the pre-trade session on Monday. Shares of IHS Markit were up 6.9% to $ 99.