In a massive new combination, Markit has agreed to be sold in an all stock deal where IHS shareholders will control the combined entity.
U.S.-based IHS Inc agreed to buy Markit Ltd to create a $13 billion London-based data and business research provider, in the latest example of a U.S. company moving its domicile overseas where corporate tax rates are lower. The companies said IHS shareholders will own about 57 percent of the combined company following the close of the all-stock deal, which values Markit at about $5.9 billion. Englewood, Colorado-based IHS, whose businesses include Jane's Defence Weekly and technology industry research firm iSuppli, will pay the equivalent of $31.13 per Markit share, a premium of 5.6 percent to Markit's Friday close. The combined company, while maintaining some "key" operations in Colorado, will be based in London.