S&P Global, IHS Markit Announce All-stock Merger Deal - Quick Facts

(RTTNews) - S&P Global (SPGI) and IHS Markit (INFO) have agreed to combine in an all-stock deal which values IHS Markit at an enterprise value of $44 billion, including $4.8 billion of net debt. Each share of IHS Markit common stock will be exchanged for a fixed ratio of 0.2838 shares of S&P Global common stock. Upon completion, current S&P Global shareholders will own approximately 67.75% of the combined company on a fully diluted basis, while IHS Markit shareholders will own approximately 32.25%. The merger is anticipated to close in the second half of 2021.

Douglas Peterson, President and Chief Executive Officer 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 advisor. Following closing, the company will be headquartered in New York.

The combined company expects to deliver annual run-rate cost synergies of approximately $480 million and $350 million in run-rate revenue synergies. The transaction is expected to be accretive to earnings by the end of the second full year post-closing. The combined company anticipates to generate annual free cash flow exceeding $5 billion by 2023, with a targeted dividend payout ratio of 20-30% of adjusted earnings per share and a targeted total capital return of at least 85% of free cash flow between dividends and share repurchases.