This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Deal: IHS Climbs on $1.4 Billion Acquisition for Polk's Carfax

Stocks in this article: IHS

NEW YORK ( TheDeal) -- IHS (IHS)was gaining as the information and automotive analytics company said it would acquire R.L. Polk & Co. for $1.4 billion, adding the Carfax vehicle history database and other automotive assets to its data and analytics offerings.

Southfield, Mich.-based Polk compiles and markets data on individual vehicle histories while selling data to individual consumers as well as manufacturers, dealers, insurance and finance firms and other clients.


The company's Carfax unit contains more than 11 billion vehicle records from more than 75,000 data sources, helping used car buyers know if the vehicle they are considering has any accident or repair history. Polk, according to IHS, generates annual sales of about $400 million with adjusted Ebitda margins in the mid-20s. Englewood, Colo.-based IHS, which has acquired more than 50 companies since 2007, said it intends to blend Polk with its existing automotive business.

"R.L. Polk has a long history of providing critical information to the automotive industry," IHS chief executive Scott Key said in a statement. "The combination with IHS Automotive creates a comprehensive capability that will significantly enhance customers' insights and decision processes across the full vehicle lifecycle with analytics from product planning through manufacturing, sales and into automotive aftermarkets."

Polk chairman and CEO Stephen Polk said that joining with IHS should create benefits for both his employees and the company's 30,000 customers worldwide. "The IHS global reach would expand the unique and vital role we've played in the auto industry over all these years, helping stakeholders across the value chain," Polk said.

IHS said it would fund the deal with about 10% equity, with the rest of the purchase price coming from cash on hand, cash from an existing revolver and a new bank term loan.


An Evercore Partners Inc. team composed of Jason Sobol, Jonathan Knee, Michael Price, Jaison Thomas, Adriana Salazar, Emily Zhou and Jeffrey Yoon advised Polk. M. Klein & Co.'s Michael Klein provided advice to IHS.

Written by Lou Whiteman in New York

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs