Data providers IHS, Markit to combine to create $13B company
NEW YORK (AP) - U.S. data provider IHS is combining with Europe's Markit to create a $13 billion company called IHS Markit.
The new company will be based in London, where Markit is currently based. Some operations will remain in Englewood, Colorado, where IHS is located, the companies said.
IHS Inc. shareholders will own about 57 percent of the combined company and Markit Ltd. shareholders will own about 43 percent.
IHS Chairman and CEO Jerre Stead will serve in the same roles for the combined company, with Markit Chairman and CEO Lance Uggla taking over the posts when Stead retires at the end of 2017.
The combined company is expected to achieve $125 million in cost savings by the end of 2019.
The boards of both companies have approved the deal, targeted to close in the second half of this year. Shareholders must still sign off on the agreement.
IHS shares rose $8.91, or 8.1 percent, to $119.62 in afternoon trading while Markit's U.S.-traded shares gained $3.42, or 11.6 percent, to $32.91.