IHS Markit is to acquire Ipreo, a financial services solutions and data provider, for USD1.855 billion from private equity funds managed by Blackstone and the Goldman Sachs Merchant Banking Division.
The acquisition is expected to close in the second half of 2018, subject to customary closing conditions and regulatory filings and approvals, including with the UK Financial Conduct Authority and under the US Hart-Scott-Rodino Antitrust Improvements Act of 1976.
IHS Markit has also announced that, following a detailed review of its financial services businesses as part of a disciplined capital allocation strategy, it has initiated a process to sell MarkitSERV, its derivatives processing business. MarkitSERV is a leading provider of end-to-end trade processing and workflow solutions across OTC derivatives asset classes.
Lance Uggla (pictured), chairman and CEO of IHS Markit, says the Ipreo acquisition represents an exciting opportunity to acquire a fast-growing financial services company with highly complementary business lines.
“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,” says Uggla. “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. We are excited to expand our footprint in the rapidly growing alternatives sector.”
“This marks the coming together of two strong organisations for the greater benefit of all of our clients,” says Scott Ganeles, CEO of Ipreo. “IHS Markit will be a tremendous partner as we continue to build on our position as a leading provider to global capital markets participants.”
Ipreo supports all participants in the capital-raising process, including banks, public and private companies, institutional and individual investors as well as research, asset management and wealth management firms. Ipreo products and services minimise the increasing costs and complexities of capital markets and offer solutions to the high demand for regulation and compliance, industry cost pressures and steep costs associated with building and maintaining in-house systems. Based in New York City, Ipreo currently employs more than 1,700 people.
“Ipreo is well known as best in class in their product and service offerings. By uniting Ipreo’s strong teams and business with IHS Markit, we will deliver even more to our client bases including new and innovative combined solutions. The way our respective businesses complement one another is quite extraordinary,” says Adam Kansler, president of financial services for IHS Markit.
Kevin Marcus, president and COO of Ipreo, says: “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. We’re excited to leverage the collective talent of our organizations to continue to bring leading-edge solutions to market.”
“As a customer of both IHS Markit and Ipreo, we are excited by this combination and the potential for further integrated services,” says Sumit Rajpal, managing director at Goldman Sachs.
Martin Brand, a senior managing director at Blackstone, said, “Since we invested in Ipreo, the company has been able to deliver rapid innovation and revenue growth, leading to substantial shareholder value creation. IHS Markit will be a synergistic partner for Ipreo, with a strong management team we have known for a long time. We look forward to continuing to work with IHS Markit to explore opportunities to partner in financial technology.”