S&P Global will own around 67.75% of the combine groups once the deal is completed in the second half of next year, the companies said, with IHS shareholders receiving 0.2838 shares of S&P Global common stock. The all-stock transaction values IHS at $44 billion, including $4.8 billion in debt.
Combining the two data and information groups will yield around $480 million in cost synergies, the companies said, and should be accretive to earnings by the end of the second full year after closing.
"Through this exciting combination, we are able to better serve our markets and customers by creating new value and insights," said S&P Global CEO Douglas Peterson. "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. We have been impressed by the IHS Markit team and look forward to welcoming the talented IHS Markit employees to S&P Global," Peterson added.
IHS shares were marked 6.9% higher in pre-market trading Monday to indicate an opening bell price of $99.00 each, extending their six-month gain to around 41.6%.
S&P Global shares closed at $341.57 each on Friday are are up around 25% for the year.