Data firm IHS Markit is to buy financial services solutions and data provider rival Ipreo from private equity funds Blackstone and Goldman Sachs for $1.86 bn in a bid to expand its financial services operations.
IHS, whose diverse set of businesses range from selling data on automotive and technology industries to publishing Jane’s Defence Weekly, says the deal will be funded through debt financing from HSBC.
It means a good payout for Blackstone and Goldman Sachs, which acquired Ipreo from investment firm KKR in April 2014 for a little less than $975 mn. Since then, Ipreo has grown its revenues by nearly 60 percent and its valuation has gained significantly since 2011, when KKR took it over in a $425 mn deal.
The company was created in 2006 when private equity firm Veronis Suhler Stevenson merged i-Deal and Hemscott, with backing from Citigroup and Bank of America Merrill Lynch.
Lance Uggla, chairman and CEO of IHS Markit, says in a statement: ‘Ipreo has an extremely strong brand in financial markets and its services are a logical and highly complementary extension to our financial services business and our customer base.
‘Across multiple product lines, we will deliver a more comprehensive service that will allow clients to streamline their workflow and make quicker and better decisions.’
Kevin Marcus, president and COO of Ipreo, says: ‘With the support of our sponsors, we’ve had a phenomenal four years of growth and game-changing new initiatives. IHS Markit is a great fit for us – in culture, market approach and focus on customer service – and is a great home for us to continue our trajectory of success.’
