Markit to merge with IHS

Two of the world’s biggest financial data companies have agreed to merge, creating a £9bn company that will extend the financial markets’ infrastructure [1].

London based Markit and American group IHS have said the merger would enable it to slash approximately $125m (£87m) from its costs within three years, thus boosting its earnings per share by 20% by 2019 [1].

IHS makes most of its revenues from energy and automotive data, while Markit focuses on financial information and is best known for its purchasing managers’ index (PMI) which gives an indication of economic activity in the manufacturing sector.

Markit was founded by a group of former credit derivatives traders including its current Chief Executive, Lance Uggla. Its shares have risen nearly 10% during its life on the Nasdaq exchange [2].

The merger will mean that IHS shareholders will own around 57% of the combined company, which will base its headquarters in London, and have a total market value of more than $13bn (£9bn) [3].

“Together, we will create a global information powerhouse and a platform for innovation that drives future revenue,” Uggla said [1].

[1] Telegraph. ‘Markit to merge with IHS in a data deal worth £9bn’.
[2] Financial Times. ‘IHS and Markit announce merger’.
[3] Reuters UK. ‘IHS to buy London-based Markit in all-stock deal’.