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 IHS shareholders will own about 57 percent of the combined company,
which will be based in London and have a total market value of more
than $13 billion.
IHS, whose businesses include Jane's Defence Weekly and technology
research firm iSuppli, will pay the equivalent of $31.13 per Markit
share, a premium of 5.6 percent to Markit's Friday close.
Englewood, Colorado-headquartered IHS, which has been on an
acquisition spree, said its shareholders would get 3.5566 common
shares of the combined company, IHS Markit, for each share held.
Markit's top shareholders include U.S. equity firm General Atlantic
LLC, Singapore state investor Temasek Holdings Pte Ltd and Canada
Pension Plan Investment Board.
IHS's energy business, its biggest division, provides research on
energy and chemicals, including global well, production and field
information to oil and gas companies.
However, revenue in the business has been falling as clients slash
spending in response to lower oil prices. Revenue in the division
fell almost 1 percent to $215.9 million in the first quarter ended
Feb. 29.
Stronger-than-expected total revenue in quarter was helped by a jump
in non-subscription revenue, which includes organizing industry
events.
IHS said in January it would buy U.S.-based Oil Price Information
Service (OPIS) to add real-time pricing information to its energy
analytics business.
The company agreed in December to buy Canada-based vehicle data
provider Carproof Corp for $460 million to boost its automotive
research business.
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IHS, however, abandoned its buyout of software maker Solera Holdings
Inc in September.
IHS Markit, while headquartered in London, will have certain key
operations in Colorado, the companies said.
M. Klein and Co and Goldman, Sachs & Co were IHS's financial
advisers, while Markit's financial adviser was J.P. Morgan
Securities LLC.
IHS competes with Thomson Reuters Corp and Bloomberg LP in providing
financial data to investors.
Up to Friday's close of $110.71, IHS shares had fallen 6.5 percent
this year. The stock hit a more than 3-year low of $92.90 last
month.
Markit's shares have fallen 2.3 percent this year.
Both shares were untraded before the opening bell on Monday.
(Reporting by Abhirup Roy in Bengaluru; Editing by Anupama Dwivedi)
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