US-based energy and environment information giant IHS has announced it will merge with financial data company Markit. The all-share transaction is a mega-merger for the sector with an estimated equity value of more than $13 billion.
The firms say the ‘merger of equals’ will create ‘a global information platform across industries with leading positions in energy, financial services and transportation’. The transaction has been unanimously approved by the Board of Directors of each company but remains subject to customary closing conditions.
The new IHS Markit will be headquartered in London, with some key operations based in Englewood, Colorado; and expects to realize cost synergies of $125m by year-end 2019, through integrating corporate functions, optimizing IT infrastructure and other measures. With a strong balance sheet, the Board plans to make $1 billion of share repurchases in each of 2017 and 2018.
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