Data giant S&P Global Inc. has agreed to buy IHS Markit Ltd. 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.
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Regulatory hurdles
“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,” Mr. Uggla said in the internal memo seen by
S&P Global is best known for providing debt ratings to countries and companies, as well as data on capital and commodity markets. It became a standalone business in 2011 when its then parent McGraw-Hill separated S&P.
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IHS Markit was formed in 2016 when IHS, whose businesses include data on automotive and technology industries to publishing Jane’s Defence Weekly, bought Markit for about $6 billion.
Markit, founded by former credit trader Mr. Uggla, provides a range of pricing and reference data for financial assets and derivatives.