NEW YORK (TheStreet) -- Markit  (MRKT) stock is up 8.88% to $32.11 on heavy trading volume on Monday after the company announced it would merge with analytics company IHS (IHS).

Under the terms of the merger agreement, IHS shareholders will own about 57% of the combined company and Markit shareholders will own about 43%. The combined company, which will be called "IHS Markit," will be based in London. 

The deal is expected to close during the second half of 2016.

"At the heart of our shared vision is the opportunity to offer our customers a broader and richer content set through both existing and new products that will support their critical decision making and manage regulatory change," Markit CEO Lance Uggla said in a statement. "The combination will enhance cash flow and enable stronger returns of capital to shareholders."

Based in London, Markit is a provider of financial information services.

IHS stock is up 6.32% to $117.71 in mid-morning trading.

So far today, 2.41 million shares of Markit have traded, well above the company's 30-day average of about 560,000 shares. 

Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rates this stock as a "hold" with a ratings score of C. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

You can view the full analysis from the report here: MRKT