Why S&P Global and IHS Markit Both Popped on Monday
Monday was a good day to be a shareholder in either S&P Global (NYSE: SPGI) or IHS Markit (NYSE: INFO), with the former closing 3% higher and the latter 7.4%. The two companies announced jointly that they have agreed to merge. This will be done with an all-stock transaction in which IHS Markit stockholders will receive 0.2838 shares of S&P Global for every share they currently own.
All told, S&P Global and IHS Markit estimate the enterprise value of the deal at $44 billion, which includes $4.8 billion in net debt.
As this is essentially an acquisition, current S&P Global CEO Douglas Peterson will helm the enlarged company. After the stock swap is completed, around 67.75% of the new entity will be owned by S&P Global's present shareholders.
Source Fool.com
