IHS And Markit Announce Merger; IHS Q1 Profit Rises

(RTTNews) - IHS (IHS) and Markit (MRKT) announced the signing of a definitive agreement under which the companies will combine in an all-share merger of equals. The equity value of the transaction is more than $13 billion. The combined company will be renamed IHS Markit and will be headquartered in London. IHS shareholders will own approximately 57 percent and Markit shareholders will own approximately 43 percent of the combined company. The transaction is expected to be immediately accretive to adjusted diluted EPS, with mid-teens accretion in 2018.

IHS Inc. (IHS), a global source of information and analytics, reported first quarter net income of $45.0 million or $0.66 per share compared to $39.5 million or $0.57 per share, prior year. Adjusted EBITDA was $180 million, up 13 percent from the prior-year period. Adjusted earnings per share was $1.40, up 10 percent from the prior-year period. On average, 15 analysts polled by Thomson Reuters expected the company to report profit per share of $1.35 for the quarter. Analysts' estimates typically exclude special items.

Revenue was $548 million, up 7 percent from the prior-year period. Total organic revenue growth was 3 percent, with 1 percent subscription organic revenue growth. Analysts expected revenue of $544.99 million for the quarter.

For the year ending November 30, 2016, IHS expects: revenue in a range of $2.30 billion to $2.38 billion, including 2-3 percent subscription organic growth, neutral non-subscription organic growth, and total organic growth of 0-3 percent; adjusted EBITDA in a range of $770 million to $800 million; and adjusted EPS in a range of $6.00 to $6.30 per share. Analysts expect the company to report profit per share of $6.16 on revenue of $2.34 billion.