IHS Markit Ltd. has agreed to acquire Ipreo Holdings LLC, a financial services solutions and data provider, from private equity funds managed by Blackstone Group LP and the Goldman Sachs Merchant Banking Division.
The purchase price is approximately $1.86 billion.
The Ipreo business is expected to add to IHS Markit's 2019 adjusted EPS. IHS Markit has received committed debt financing for the acquisition and it will suspend its share repurchases until leverage returns to its targeted 2-3x leverage range.
Additionally, IHS Markit announced that it has initiated a process to sell its derivatives processing business, MarkitSERV, following a review of its financial services businesses. MarkitSERV provides end-to-end trade processing and workflow solutions across OTC derivatives asset classes.
The Ipreo deal may close in the second half subject to regulatory approvals, including with the U.K. Financial Conduct Authority and under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Barclays is acting as lead financial adviser and HSBC is acting as financial adviser to IHS Markit in connection with the deal. Davis Polk & Wardwell LLP is acting as IHS Markit's legal adviser. HSBC will act as sole lead arranger and book runner for the committed debt financing for the acquisition.