S&P Global Plans to Buy IHS Markit for $44 Billion

New York-headquartered S&P Global Inc is expected to acquire IHS Markit Ltd, thus merging the two financial data giants into one.

Citing “people familiar with the matter,” The Wall Street Journal reported that the deal could be of around $44 billion, making it the largest acquisition deal of the year. The acquisition will be an all-stock deal.

Neither of the companies confirms the possibility of signing a deal of this magnitude yet. But, an official announcement could be out as soon as Monday.

Founded in 2016 with the merger of IHS and Markit, the London-headquartered firm offers software to banks for underwriting stocks and bond offerings.

With around $37 billion in market value, IHS Markit is one of the largest financial data stream providers, and the demand for its products has increased significantly in recent years. The company reported its Q3 financials in September, showing more than a 300 percent jump in its net income.

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Moreover, S&P Global is one of the leaders in the capital and commodities data markets and is known for providing debt ratings to countries and companies. It parted from its previous parent McGraw-Hill in 2011 and now has a market capitalization of about $82 billion.

The Race to Dominate Financial Data

In the past two decades, the demand for financial data skyrocketed, which spawned many players in the market.

Though the S&P Global-IHS Markit deal is yet to be finalized, the London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term parent is clearing its way to acquire Refinitiv for $27 billion. That acquisition faced anti-trust hurdles from European regulators which forced the stock Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term operator to sell its stake in the Italian bourse.

Furthermore, the LSE Group is expecting to close the Refinitiv acquisition in the first quarter of next year.