NEW YORK (TheStreet) -- IHS (IHS) stock closed up 10.28% to $122.09 on heavy volume in Monday's trading session after agreeing to buy Markit (MKRT) to create a London-based data provider worth more than $13 billion.
The analytics company's shareholders will own about 57% of the combined company after the close of the all-stock transaction.
Colorado-based IHS will pay the equivalent of $31.13 per Markit share. The company's shareholders will receive 3.5566 shares of the combined company for each share held.
Although the combined company will have some "key operations" in Colorado, its headquarters will be in London.
About 1.44 million shares of IHS were traded today, well above the company's average trading volume of roughly 285,817 shares per day.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
IHS' strengths such as its compelling growth in net income, expanding profit margins and good cash flow from operations are countered by weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and feeble growth in the company's earnings per share.
You can view the full analysis from the report here: IHS
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 article's author.