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S&P Global is closing in on a deal to buy IHS Markit for about $ 44 billion, in an acquisition that would bring together two of the largest data providers and create a powerful challenge for information powerhouses Bloomberg and Refinitiv, according to people informed about the matter.
A deal could be announced on Monday, one person said, as the two companies were finalizing the deal.
The move would mark the latest round of consolidation among big data providers. The owner of the New York Stock Exchange, Intercontinental Exchanges, has closed its biggest deal since agreeing to buy US mortgage data provider Ellie Mae for $ 11 billion. That followed the London Stock Exchange’s decision to acquire Refinitiv for $ 27 billion a year ago.
London-based IHS Markit had been considered a possible acquisition target for a large exchange, in particular ICE, since the LSE struck its own deal with Refinitiv.
An adviser, who was not directly involved in the talks between S&P Global and IHS Markit, said that even if the two reached a deal, a rival buyer could close the deal with a higher offer.
Negotiators have become more comfortable with high-priced transactions in recent months, buoyed by positive news of a Covid-19 vaccine and the end of the US election.
A deal between S&P Global, which has a market value of about $ 82 billion, and IHS Markit, with a market capitalization of $ 37 billion, would be the largest this year.
IHS Markit, which was formed from a 2016 merger between IHS and Markit, would drive S&P Global’s data and analytics offerings.
S&P Global, the company that controls rating agency Standard & Poor’s, has been exploring options to bolster its data business since it bought SNL Financial for $ 2.2 billion in 2015, a person with knowledge of the matter said.
The data analytics industry has been heating up as companies come together to compete against giants like Michael Bloomberg’s eponymous company, whose terminals are ubiquitous on Wall Street.
A deal is likely to face serious regulatory scrutiny, as antitrust watchdogs are increasingly concerned about the oversized market power of a shrinking pool of data providers. LSE’s deal with Refinitiv has faced intense scrutiny in Brussels, indicating that regulators will subject large transactions to lengthy investigations.
The Wall Street Journal first reported that S&P Global and IHS Markit were in advanced settlement negotiations.
