Data and analytics giant S&P Global Inc. (SPGI - Free Report) and London-based critical information, analytics, and solutions provider IHS Markit have announced a merger agreement today.
In an all-stock deal that values IHS Markit at $44 billion, each IHS Markit share will be exchanged for a fixed ratio of 0.2838 shares of S&P Global.
The deal will merge two of the largest data providers to Wall Street and will be the biggest of the year, surpassing Nvidia's (NVDA - Free Report) around $40 billion acquisition of Arm Holdings and the $40 billion transaction between Nippon Telegraph & Telephone (NTTYY - Free Report) and a subsidiary.
The buyout could significantly enhance S&P Global’s data and analytics offerings. It is anticipated to be accretive to the company’s earnings by the end of the second year post-closing.
Since acquisition will add to the increased level of consolidation among financial data providers, it may attract strict regulatory scrutiny. This is because increased consolidation has raised concerns about rising market power among a dwindling group of data providers.
Notably, both S&P Global and IHS Markit have had an impressive rally on the bourses over the past year, appreciating a respective 30.3% and 28.4% compared with 4.9% rally of the industry and 17.3% growth of the Zacks S&P 500 composite.
S&P Global and IHS Markit currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Data and analytics giant S&P Global Inc. (SPGI - Free Report) and London-based critical information, analytics, and solutions provider IHS Markit have announced a merger agreement today.
In an all-stock deal that values IHS Markit at $44 billion, each IHS Markit share will be exchanged for a fixed ratio of 0.2838 shares of S&P Global.
The deal will merge two of the largest data providers to Wall Street and will be the biggest of the year, surpassing Nvidia's (NVDA - Free Report) around $40 billion acquisition of Arm Holdings and the $40 billion transaction between Nippon Telegraph & Telephone (NTTYY - Free Report) and a subsidiary.
The buyout could significantly enhance S&P Global’s data and analytics offerings. It is anticipated to be accretive to the company’s earnings by the end of the second year post-closing.
Since acquisition will add to the increased level of consolidation among financial data providers, it may attract strict regulatory scrutiny. This is because increased consolidation has raised concerns about rising market power among a dwindling group of data providers.
Notably, both S&P Global and IHS Markit have had an impressive rally on the bourses over the past year, appreciating a respective 30.3% and 28.4% compared with 4.9% rally of the industry and 17.3% growth of the Zacks S&P 500 composite.
S&P Global and IHS Markit currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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