IHS Markit and Informa to exchange business units

Wednesday, May 22nd, 2019 
IHS Markit logo

Informa Agribusiness Intelligence to be transferred in full to IHS Markit and the majority of the IHS Markit TMT business to be transferred to Informa

LONDON — IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions, and Informa (LSE: INF.L), the international exhibitions, events, information services and scholarly research group, today announced the exchange of the majority of the IHS Markit Technology, Media and Telecoms (TMT) intelligence business for Informa’s Agribusiness Intelligence group.

“This agreement is very positive for both IHS Markit and Informa, increasing the focus of each company on core markets where it has particular strengths and a long-term commitment to invest and grow,” said Lance Uggla, CEO of IHS Markit and Stephen A. Carter, Group Chief Executive, Informa PLC.

“The Informa Agribusiness Intelligence portfolio is a clear extension of our Chemical and Downstream businesses and builds our existing data, pricing, insights, forecasting and news services within our Resources segment,” continued Uggla. “Agriculture is the largest end chemical market in the world and this transaction expands our capabilities into fertilizers and chemical crop protection, while substantively expanding our capabilities in biofuels.”

Carter added, “At Informa we are focused on improving our depth and specialisation around attractive customer markets. Our ambitions for Informa Tech will be further enhanced by the addition of the IHS Markit TMT portfolio, extending our customer and international reach, creating a strong platform for future growth.”

The agreement values the two exchanged businesses at equivalent EBITDA multiples, with Informa contributing an additional $30 million cash to IHS Markit to reflect the larger EBITDA contribution from the TMT business. IHS Markit will retain RootMetrics, its benchmarking business and a portion of its market intelligence business. Both transactions are expected to close in July 2019 and are subject to customary closing conditions, including US regulatory approval.

IHS Markit confirmed that the transaction will not affect its capital allocation strategy to delever its debt ratio below 3.0x and complete $500 million (USD) in share repurchases in 2019.

Links: IHS Markit; Informa