IHS Markit Ltd.NASDAQ
Markit's Processing Division's Drag Is Close To Being Over
Alpha Gen Capital
Alpha Gen Capital
Tue, Jul. 12, 4:39 PM
- IHS (IHS +1.1%) and Markit (MRKT +0.6%) have closed their $13B merger to become IHS Markit (NASDAQ:INFO).
- Shares will begin trading under their new symbol tomorrow on Nasdaq.
- IHS stockholders will receive 3.5566 common shares of IHS Markit in exchange for each share of IHS common stock.
- The board will now consist of 11 members: Dinyar Devitre, Ruann Ernst, William Ford, Balakrishnan Iyer, Robert Kelly, Deborah McWhinney, Jean-Paul Montupet, Richard Roedel, James Rosenthal, Jerre Stead (chairman and CEO of the combination) and Lance Uggla (president of the combination).
- A conference call to discuss the wrapped deal will come tomorrow at 8 a.m. ET.
Tue, Jul. 12, 10:44 AM
- Shareholders at both companies have approved the merger between IHS (IHS +0.7%) and Markit (MRKT +0.6%), creating a $13B market/financial data powerhouse when the deal closes today.
- In separate special meetings, the companies' investors gave their OK to the deal. Some 84% of outstanding IHS shares and 91% of Markit shares were voted in favor.
- The combined IHS Markit will redomicile in London (but retain some operations in Colorado, where IHS is headquartered) and trade on Nasdaq under the symbol INFO.
- IHS shareholders will hold about 57% of the combined company, with Markit shareholders owning the other 43%.
Tue, Jul. 5, 3:11 PM
- IHS (IHS -1.6%) and Markit (MRKT -1.6%) say their trading symbol for the merged "IHS Markit" company will be INFO, on Nasdaq.
- The two have planned a $13B merger at which point the company will redomicile in London (IHS is headquartered currently in Englewood, Colo.).
- Both companies are holding special meetings on Monday to vote on merger-related details. Approvals mean the companies will complete the merger Tuesday (July 12), and expect to begin trading under INFO on Wednesday, July 13.
Wed, Jun. 1, 1:31 PM
- IHS (IHS -1.8%) -- pursuing a $13B "merger of equals" with Markit (MRKT -0.8%) -- is selling its Operational Excellence & Risk Management business to Genstar Capital.
- The carve-out transaction will result in an independent company that Genstar will re-brand by the end of the year and base in Chicago.
- The private equity firm is partnering with Paul Marushka, previously president of Marsh ClearSight, on the deal. Marushka will serve as president and CEO of the new company.
- The Operational Excellence & Risk Management unit has more than 2,500 customers and hundreds of thousands of individual users in highly regulated industries.
Tue, Apr. 5, 2:50 PM
- The Treasury Department yesterday evening put its foot down on tax inversions, all but putting an end to the Pfizer/Allergan deal, with Allergan now lower by 15% on the session.
- Other prospective inversion candidates are mulling the news. Among them:
- Johnson Controls (JCI -2%), Tyco (TYC -2.6%), Progressive Waste (BIN -5%), Waste Connections (WCN -4.2%), IHS (IHS -2%), Markit (MRKT -2.4%), Baxalta (BXLT -6.4%), Shire (SHPG -2.9%)
- Now read: Progressive Waste Solutions Merger With Waste Connections Creates Significant Value And Scale
Wed, Mar. 23, 5:49 PM
- In a down market today, IHS (IHS -3.2%) and Markit (MRKT -2.1%) gave back a bit of the sharp gains they marked following a plan to merge into a $13B research giant.
- Since the all-stock deal was announced, IHS has gained 9.3% and Markit 13.9%. The two added to gains as a number of analysts bumped price targets yesterday.
- There's some skepticism about the merits. Deutsche Bank, which raised its target on IHS yesterday to $131, says the deal still has strategic risks as too much diversification could hurt existing products: "We worry that in 3 years when the merger benefits are realized, the increased scope of the products being sold to the larger client list will dilute the sales focus."
- Meanwhile, today SunTrust Robinson Humphrey downgraded IHS from Buy to Neutral and cut its price target to $130 from a previous $135. Shares of IHS closed today at $121.
- Following the news, Standard & Poor's has affirmed its corporate credit rating of BB+ on IHS, with a stable outlook, but put its rating on the company's senior unsecured instruments on negative CreditWatch as it awaits more capital structure information. "IHS's good market positions and recurring revenue base are likely to result in consistent operating performance over the next 12 months," it says.
- Previously: IHS up 1.5% post-merger deal as analysts boost price targets (Mar. 22 2016)
- Previously: IHS +8%, Markit +12% on plans to merge into $13B firm (Mar. 21 2016)
Tue, Mar. 22, 11:00 AM
- IHS is up 1.5%, building slightly on yesterday's 10%-plus gain fueled by strong earnings and a $13B merger plan, as analysts stack up to raise price targets on the stock.
- The company's plan to merge with Markit in an all-stock deal and redomicile in London came alonside fiscal Q1 earnings where the company beat expectations on top and bottom lines.
- Most firms have a Neutal rating on the stock; Stifel Nicolaus rates it a Buy and raised its target to $140, implying 13% upside from today's price of $123.93.
- Deutsche Bank, Barclays and Piper Jaffray hold Neutral ratings and raised their price targets respectively to $131, $127 and $123.
- For its part, Credit Suisse has reiterated its Hold rating and a $122 price target that's been surpassed out of the open today.
- Markit (NASDAQ:MRKT), meanwhile, is up 1.1% alongside its own price target hikes. Barclays (Equal Weight) raised its target to $35 from $30, while Deutsche Bank (Buy) raised its target from $34 to $37, implying just over 9% upside from here.
- Previously: IHS +8%, Markit +12% on plans to merge into $13B firm (Mar. 21 2016)
- Previously: IHS, Markit in $13B "merger of equals" (Mar. 21 2016)
Mon, Mar. 21, 1:47 PM
- IHS stock is up 8%, and reaching its highest point so far this year, after an earnings beat in its fiscal Q1 and news that it's combining with Markit into a $13B research giant.
- Markit (NASDAQ:MRKT) is up 11.9% and hitting a 52-week high on the deal, which values it at about $5.9B. It's an all-stock deal with an implied value of $31.13/share of Markit, now trading at $32.96.
- The deal also marks an inversion for Englewood, Colo.-based IHS, which will redomicile in London as IHS Markit.
- IHS beat on top and bottom lines in its fiscal Q1. Of 6.7% revenue growth, organic revenue growth was 3% (1% subscription growth). EBITDA of $179.6M was up 13% and beat an expected $172.9M.
- Revenue breakout: Subscription revenue, $443.2M (up 3% on headline basis, 1% organically); non-subscription revenue, $105.3M (up 24% on headline basis, 14% organically).
- For the full year, IHS forecasts revenues of $2.3B-$2.38B, EBITDA of $770M-$800M, and EPS of $6.00-$6.30, all in line with expectations.
Mon, Mar. 21, 8:04 AM
- Analytics firms IHS and Markit (NASDAQ:MRKT) announce what's being called a merger of equals valued at more than $13B.
- The combined company will be named IHS Markit and headquartered in London, with certain operations based in Englewood, Colo.
- IHS shareholders will own ~57% of the new entity, with MRKT shareholders owning 43%.
- Separately, IHS reported better than expected FQ1 earnings of $1.40/share on revenues of $548.5M.
Thu, Feb. 11, 3:24 PM
- IHS (IHS -1.3%) today wrapped its acquisition of Oil Price Information Service, the agency serving up price reporting for the oil, natural gas and biofuels industries.
- The service adds a downstream piece to the IHS portfolio. It'll keep its headquarters in Gaithersburg, Md.
- The companies had agreed to a deal for $650M last month. OPIS has about 290 employees and was previously owned by UCG.
- Previously: IHS to buy Oil Price Information Service for $650M (Jan. 11 2016)
Tue, Feb. 9, 12:26 PM
- Markit (MRKT -0.8%) has acquired systems integration software developed by JPMorgan (NYSE:JPM) for an undisclosed sum. The company will "make the software available to sellside and buyside institutions seeking to integrate with major systems used in the syndicated loan market, including agent-servicing platforms and Markit's trade settlement services."
- Customer deployments are expected to start in 2H16. Markit doesn't expect the purchase to have a material impact on 2016 results.
- Markit exec Scott Kostyra: "Acquiring this software allows Markit to provide the global syndicated loan market with a proven solution for integrating with the newest technology for straight through processing of loan transactions and lifecycle events. We are offering an alternative to expensive and risky internal software builds and helping expedite industry adoption of risk and cost reducing initiatives such as Markit Clear for trade settlement and FpML for electronic communication of loan information."
Mon, Jan. 11, 7:12 AM
- IHS Inc. (NYSE:IHS) agrees to acquire Oil Price Information Service, a pricing reporting agency for the oil, natural gas and biofuels industries, for $650M.
- IHS says the acquisition "represents a new area of business for IHS and gives IHS visibility across the entire petroleum value chain, from wellhead to consumer."
- IHS says it will provide more details concerning the deal on its earnings call tomorrow.
Dec. 28, 2015, 7:20 AM
- (NYSE:IHS) acquires Canadian company CARPROOF for $650M CND (US$460M). The London, Ontario-based firm provides automotive vehicle history reports to dealers, auto auctions, original equipment manufacturers, lenders, insurers, governments, consumers and law enforcement agencies.
- The transaction complements IHS's CARFAX, acquired in July 2013.
- IHS is a global information company serving a wide range of sectors including Energy, Chemical, Automotive, Aerospace Defense & Security, Maritime & Trade, Technology/Media/Telecom, Product Design and Economics & Country Risk.
Oct. 26, 2015, 10:23 AM
- Reportedly outbidding Markit (MRKT -0.6%) and Nasdaq OMX (NDAQ +0.1%), ICE (ICE +1.2%) agrees to buy Interactive Data from its P-E owners for $5.2B - $3.65B in cash and $1.55B of ICE stock.
- The deal is expected to close this year, and apparently eliminates the chance of an IPO for the company.
- ICE expects adjusted earnings accretion of roughly 5% in year one, with expense synergies of $150M mostly completed in the first three years.
- A conference call is set for 8:30 ET on Wednesday.
Sep. 29, 2015, 9:41 AM
- IHS (IHS +3.5%) used its FQ3 earnings call to state it's not pursuing an acquisition of Solera (SLH -2.2%). Bloomberg and Reuters previously reported IHS was interested in a bid that would trump Vista Equity's $55.85/share offer.
- While Solera slips, IHS is higher following the disclosure, an FQ3 beat, and solid FY15 (ends in November) guidance. The business information software/services provider expects FY15 revenue to be at the midpoint of a $2.3B-$2.34B guidance range, and EPS to be toward the high end of a $5.80-$6.00 range. Consensus is at $2.32B and $5.92.
Sep. 25, 2015, 7:49 PM
- IHS has lined up three banks for debt financing and is preparing a stock-and-cash bid for Solera Holdings (NYSE:SLH) for as soon as next week to exceed the existing $6.5B deal Solera has to sell itself to Vista Equity Partners, Reuters reports.
- Solera had reportedly been pursuing a possible deal with IHS after it thought offers from Vista Equity and Thoma Bravo were light. IHS could reduce exposure to the energy sector by taking on Solera, which makes software to process car insurance claims and could fit well with existing IHS automotive data unit R.L. Polk & Co.
- IHS is pushing the offer such that the companies can close a deal by Oct. 11, Reuters says, when Solera's deal termination fee due to Vista Equity would rise to $114.4M from $38.2M.
- After hours: SLH +0.8%, to $55.72 (Vista Equity's offer is for $55.85/share); IHS unchanged.
- Previously: IHS reportedly mulling counteroffer for Solera; SLH +3.6% (Sep. 21 2015)
- Previously: Solera Holdings confirms $6.5B buyout (Sep. 14 2015)
- Previously: Reuters: Buyout of Solera Holdings stalling over price (Sep. 11 2015)