S&P Global has agreed to buy IHS Markit in an all-stock deal worth $44bn, resulting in the creation of a financial data giant serving Wall Street.
The transaction, whose consideration includes $4.8bn of net debt, challenges rivals Bloomberg and Refinitiv.
As part of the agreed terms of the merger deal, every share of IHS Markit common stock will be exchanged for a fixed ratio of 0.2838 shares of S&P Global common stock.
Existing S&P Global shareholders will own around 67.75% of the merged business while IHS Markit shareholders will hold a stake of around 32.25%.
The merged company is anticipated to benefit from increased scale across core markets. It will offer a range of solutions across data, platforms, benchmarks and analytics in ESG, climate and energy transition.
S&P Global president and CEO Douglas Peterson will become CEO of the unified entity.
Peterson said: “This merger increases scale while rounding out our combined capabilities, and accelerates and amplifies our ability to deliver customers the essential intelligence needed to make decisions with conviction.
“We are confident that the strengths of S&P Global and IHS Markit will enable meaningful growth and create attractive value for all stakeholders.”
IHS Markit chairman and CEO Lance Uggla will stay on as a special adviser to the company for one year after completion.
Uggla called the deal a win for both the companies as they use their respective strengths in information, data science, research and benchmarks.
The transaction is expected to wrap up in the second half of next year.
Meanwhile, the merger is expected to face close scrutiny from the competition regulator as the market for financial data becomes increasingly concentrated.
Last year, London Stock Exchange Group (LSEG) agreed to acquire financial data provider Refinitiv in an all-stock transaction worth $27bn.
The company is said to be in the final stage of securing clearance from the European Union’s competition commissioner.