US financial information group S&P Global has agreed to buy London-headquartered IHS Markit in an all-stock deal that values the data provider at $44 billion, including $4.8 billion in debt.
The deal, which marks the largest merger announced so far this year, is expected to create a significant rival to Bloomberg and Refinitiv. IHS Markit, which was formed from a merger of IHS and Markit in 2016, will also be S&P Global's biggest acquisition in the space since it bought SNL Financial in 2015.
It also continues an ongoing trend toward consolidation in the financial information space. London Stock Exchange is in the process of completing its acquisition of Refinitiv, a $27 billion transaction it agreed to a year ago. In August, Intercontinental Exchange also agreed to buy mortgage data business Ellie Mae from Thoma Bravo for $11 billion.
After the deal, S&P Global and IHS Markit shareholders will own around 68% and 32% of the combined company, respectively. Together, the two businesses expect to save $480 million and generate $350 million through cross-selling opportunities. S&P Global CEO Douglas Peterson will lead the combined entity, while IHS Markit CEO Lance Uggla will stay on as a special adviser for a year after the deal closes.