Data giant S&P Global (NYSE:SPGI) has agreed to buy IHS Markit (NYSE:INFO) in an all-stock deal worth $44 billion that will be the biggest corporate acquisition of 2020 and create a heavyweight in the increasingly competitive market in financial information.
The mega-deal, which IHS Markit Chief Executive Officer Lance Uggla told employees in a memo had been in the works for the last few months, highlights the growing importance of big data in financial markets governed by information-hungry trading algorithms.
It is expected to close in the second half of 2021 if it can pass reviews by antitrust regulators who have been showing increasing interest in the sector.
"The next steps will be to receive regulatory approvals both in the U.S. and the EU, which we expect to take between six to nine months, and receive approval by our respective shareholders," Uggla said
S&P Global is best known for providing debt ratings to countries and companies, as well as data on capital and commodity markets worldwide. It became a standalone business in 2011 when its then parent McGraw-Hill separated S&P from its education business.
IHS Markit was formed in 2016 when IHS, whose businesses range from data on automotive and technology industries to publishing Jane’s Defence Weekly, bought Markit for around $6 billion.
Markit, founded by former credit trader Uggla, provides a range of pricing and reference data for financial assets and derivatives.
SPGI gained $2.72 to $344.29, while those for INFO climbed $6.02, or 6.5%, to $98.60.
