Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  S&P Global Inc.    SPGI

S&P GLOBAL INC.

(SPGI)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

S&P Global Agrees to Buy IHS Markit

11/30/2020 | 07:09am EST

By Cara Lombardo And Liz Hoffman

S&P Global Inc. agreed to acquire IHS Markit Ltd. for about $44 billion, the companies said Monday, a landmark deal that would combine two of the largest providers of data to Wall Street.

The all-stock deal is the largest of the year. IHS Markit, based in London, had a market value of about $37 billion before the deal was announced; S&P's was about $82 billion.

The companies said IHS Markit shareholders will receive 0.2838 share of S&P Global stock for each IHS share under the agreement reached. S&P Global shareholders will own approximately 68% of the combined company.

The Wall Street Journal first reported Sunday that such a deal was imminent.

The deal would combine one of the oldest names in financial markets with a relative newcomer. S&P traces its roots to an 1860 compendium of information for railroad investors and is best known for its bond ratings and its iconic stock-market indexes, which serve as shorthand for the health of global markets.

IHS Markit, formed in 2016 by the merger of two smaller players, tracks millions of data points in financial markets. It owns software that big Wall Street banks use to underwrite corporate stock and bond offerings, and tracks transportation and energy data, the latter of which could pair with S&P's commodities business, Platts.

Financial data has exploded over the past two decades as markets sped up and computer-driven investment strategies replaced human stock pickers. The success of Bloomberg LP, which launched in the 1980s offering electronic bond-price quotes, spawned a wave of competitors seeking market intelligence that could be packaged and sold to information-hungry investors.

Those players have themselves merged in recent years into a handful of giants, as data providers such as S&P Global and FactSet battle it out with big exchanges eager to monetize their pricing data to offset falling trade commissions.

Blackstone Group Inc. in 2018 bought a majority stake in Thomson Reuters Corp.'s financial-data arm and a year later agreed to sell the company, by then rebranded as Refinitiv, to the owner of the London Stock Exchange.

In 2016, IHS, which provided analytics for businesses and governments, bought London-based Markit Inc. and moved its domicile to the U.K. It was part of a wave of such deals, known as inversions, in which American companies moved overseas to lower their tax rates.

Markit was founded in 2003 in a barn outside London by former TD Securities executive Lance Uggla and was backed in its early days by a group of large banks eager for transparent pricing data in the opaque world of credit derivatives.

It went public in 2014, raising $1.3 billion in a larger-than-expected IPO that allowed 12 Wall Street banks including Goldman Sachs Group Inc. and Bank of America Corp. to sell portions of their stakes.

Mr. Uggla took over the combined company around the end of 2017 from his counterpart at IHS.

At the time of the merger between IHS and Markit, the two companies had a combined market value of about $13 billion. Today, IHS Markit is nearly three times as valuable, a sign of how hot the market for financial data is.

IHS in late September reported that its third-quarter profit rose while its revenue fell as its customers -- which include companies in financial services, transportation and oil and gas -- recovered from the shock of the coronavirus pandemic at varying speeds. A unit that supplies data to energy companies and one that sells technical information to product designers, among other things, were worst hit.

S&P is now bulking up after years of slimming down. The company in 2011 was spun out of the McGraw Hill publishing conglomerate and in 2016 sold J.D. Power, the marketing firm known for its customer-satisfaction rankings, before rebranding from McGraw Hill Financial.

S&P's revenue rose 9% in the third quarter, rising in all of its divisions and especially in the ratings business, its largest. The business has benefited as bond issuance soars with interest rates at historic lows. Profit fell compared with a year ago.

At $44 billion, S&P's deal for IHS would be the largest of the year globally, according to Dealogic data, topping both chip maker Nvidia Corp.'s nearly $40 billion deal to buy chip designer Arm Holdings. and a roughly $40 billion deal between Nippon Telegraph & Telephone Corp. and a subsidiary.

Global M&A volume so far this year is running 12% lower compared with the same period a year earlier, with the U.S. down 28%, after the pandemic forced companies to tend to their own businesses. Deals dried up in the second quarter but have come roaring back since late summer, particularly among technology and health-care companies. As in prior years, technology is by far the most active sector for M&A, with $669 billion worth of deals so far.

With the stock market rallying, many acquirers are using their richly valued shares as currency, prompting a steady stream of all-stock deals in recent weeks.

The Wall Street Journal reported last week that Salesforce.com Inc. is in talks to buy Slack Technologies Inc., for more than the $17 billion market value of the maker of a popular office-chat app.

Goldman Sachs Group Inc. was financial adviser to S&P Global and Wachtell, Lipton, Rosen & Katz served as its legal adviser. Morgan Stanley was financial adviser to IHS Markit and Davis Polk & Wardwell LLP was its legal adviser.

Write to Cara Lombardo at cara.lombardo@wsj.com and Liz Hoffman at liz.hoffman@wsj.com

(END) Dow Jones Newswires

11-30-20 0708ET

Stocks mentioned in the article
ChangeLast1st jan.
BANK OF AMERICA CORPORATION -2.88% 33.01 Delayed Quote.12.14%
IHS MARKIT LTD. 1.92% 85.51 Delayed Quote.-4.81%
LONDON BRENT OIL -2.91% 54.8 Delayed Quote.9.17%
LONDON STOCK EXCHANGE PLC -2.04% 9134 Delayed Quote.1.40%
MORGAN STANLEY -1.61% 75.24 Delayed Quote.9.79%
NIPPON TELEGRAPH AND TELEPHONE CORPORATION -0.54% 2750 End-of-day quote.3.95%
NVIDIA CORPORATION -2.58% 514.38 Delayed Quote.-1.50%
S&P GLOBAL INC. -0.08% 305.95 Delayed Quote.-6.93%
THE BLACKSTONE GROUP INC. -0.24% 63.35 Delayed Quote.-2.25%
THE GOLDMAN SACHS GROUP, INC. -2.23% 301.01 Delayed Quote.14.14%
THOMSON REUTERS CORPORATION 2.95% 102.17 Delayed Quote.-1.93%
WTI -3.09% 52.11 Delayed Quote.11.60%
All news about S&P GLOBAL INC.
01/15S&P GLOBAL RATINGS : Drives Digital-First Access to Debt Markets with Ratings360..
PR
01/15S&P GLOBAL : Schedules Fourth Quarter and Full-Year 2020 Earnings Announcement a..
PR
01/14S&P GLOBAL : UBS Adjusts Price Target for S&P Global to $420 From $419, Maintain..
MT
01/13SHAREHOLDER ALERT : WeissLaw LLP Investigates IHS Markit Ltd.
PR
01/13IHS MARKIT : Cuts 2021 Adjusted EPS Guidance on Share-Buyback Pause
DJ
01/12S&P GLOBAL : Vertical IQ Teams Up to Support US Financial Institutions
MT
01/12S&P GLOBAL : UBS Adjusts S&P Global's Price Target to $419 From $413, Reiterates..
MT
01/12S&P GLOBAL MARKET INTELLIGENCE : and Vertical IQ Announce Strategic Collaboratio..
PR
01/08S&P GLOBAL : Fiat Chrysler Automobiles Upgraded To 'BBB-' On Merger With Peugeot..
AQ
01/06S&P DOW JONES INDICES : Reports U.S. Indicated Dividend Payments Increased $9.5 ..
PR
More news
Financials (USD)
Sales 2020 7 324 M - -
Net income 2020 2 459 M - -
Net Debt 2020 666 M - -
P/E ratio 2020 30,1x
Yield 2020 0,88%
Capitalization 73 612 M 73 612 M -
EV / Sales 2020 10,1x
EV / Sales 2021 9,70x
Nbr of Employees 22 500
Free-Float 82,7%
Chart S&P GLOBAL INC.
Duration : Period :
S&P Global Inc. Technical Analysis Chart | SPGI | US78409V1044 | MarketScreener
Technical analysis trends S&P GLOBAL INC.
Short TermMid-TermLong Term
TrendsBearishBearishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 11
Average target price 381,89 $
Last Close Price 305,95 $
Spread / Highest target 37,3%
Spread / Average Target 24,8%
Spread / Lowest Target -9,79%
EPS Revisions
Managers and Directors
NameTitle
Douglas L. Peterson President, Chief Executive Officer & Director
Richard Edward Thornburgh Non-Executive Chairman
Ewout L. Steenbergen Chief Financial Officer & Executive Vice President
Nicholas Cafferillo Chief Data & Technology Officer
Sitarama Swamy Kocherlakota Chief Information Officer
Sector and Competitors
1st jan.Capitalization (M$)
S&P GLOBAL INC.-6.93%73 612
RELX PLC1.84%47 778
THOMSON REUTERS CORPORATION-1.93%39 881
WOLTERS KLUWER1.51%22 230
EQUIFAX INC.-8.21%21 531
TRANSUNION-8.01%17 369