S&P Global And IHS Markit To Divest OPIS And Associated Businesses To News Corp For $1.15B

  • S&P Global Inc SPGI and IHS Markit Ltd INFO have agreed to sell Oil Price Information Services (OPIS); Coal, Metals and Mining; and PetroChem Wire businesses to News Corp NWSA in a cash transaction valued at ~$1.15 billion.
  • S&P Global and IHS Markit announced in May their exploration of the sale of the businesses to ensure a timely merger of both companies.
  • The sale will complete at the close of the S&P Global and IHS Markit merger, which is expected to occur in the fourth quarter of 2021.
  • OPIS will become part of Dow Jones' burgeoning Professional Information Business. With this acquisition, Dow Jones will be providing pricing and news, and analytics for the Coal, Mining, and Metals end markets through McCloskey, among other brands.
  • In its current fiscal year ending November 30, 2021, OPIS is expected to generate $129 million in revenues, with Adjusted EBITDA margins exceeding 50%.
  • News Corp expects to receive an estimated tax benefit of $180 million as part of the transaction.
  • News Corp held cash and cash equivalents of $1.97 billion as of March 31, 2021.
  • Price Action: SPGI shares are up 1.48% at $435.05, INFO stock is up 1.58% at $118.69, and NWSA is up 0.90% at $24.85 on the last check Monday.
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