IHS and Markit Set to Merge


In late March, global data giants Markit and IHS released that they will become a single entity. As a result of the merger, the newly formed company will be worth around $13 billion. Shareholders from IHS will maintain 57% of the company while Markit will hold the rest at 43%. The new company’s name is set to be called IHS Markit – to ensure both companies are being fully recognized by the merger.

The world headquarters for the new company will be based in London. There are several reason the capital of England was picked, but the main one seems to be for tax purposes. England will only charge the company 20% in corporate tax as opposed to the 35% that the United States would. It doesn’t mean a US office would not be present, though. Several key operations would still be based out of Englewood, Colorado, where IHA is currently headquartered.

IHS, a US-based company, was first found in 1959 by Richard O’Brien. Focusing on providing their clients with accurate analytics and information, they strove to be the best in that key industry. With a rich and detailed background, IHS continued to grow over the years as they went on an acquisition spree over the past several years. By executing a growth strategy, the company bought out rival businesses that focused on analytics and data providers. In 2015 alone, they bought out four different companies.

Markit is a UK marketing data company that was founded in 2003. In 13 years, the company has 13 different offices around the world that employed over 4,200 people. Besides the substantial growth, Markit went public in 2014. The company’s IPO raised around $1.3 billion on NASDAQ when it went live. It was soon after that IHS approached the marketing firm with talks of a merger.

IHS CEO Jerre Stead released a statement about the merger: “This transformational merger brings together two information-rich companies to create a powerful provider of unique business intelligence, data, and analytics to a broad and complementary customer base. IHS Markit and its shareholders will benefit from enhanced product innovation to deliver strong returns across economic cycles.”

Mr.Stead will act as CEO and Chairman of IHS Markit until 2017 when he is set to retire. The current CEO and Chairman of Markit, Lance Uggla, will act as the President until Mr.Stead retires where he is set to take over the head position. News of the merger was met with positivity as the deal is set to be finalized in the later half of 2016.

David E. Mickey is a financial executive based in Buffalo, New York, and he’s an Enterprise Sales Executive at Docupace Technologies. Please visit his websites to learn more: http://davidemickey.comhttp://davidemickey.net/; and http://davidemickey.org/.