Summary
S&P Global Inc. (SPGI) has entered into a definitive agreement to sell its global engineering solutions business, operated by its indirect wholly-owned subsidiary IHS Markit Ltd., to Allium Buyer LLC, a company controlled by funds affiliated with Kohlberg Kravis Roberts & Co. L.P. (KKR). The transaction is valued at $975 million in cash, subject to customary purchase price adjustments. This divestiture is a significant strategic move for S&P Global, likely aimed at streamlining operations and focusing on core businesses following its recent acquisition of IHS Markit. The sale is subject to regulatory approvals and other customary closing conditions, with a target completion date of July 14, 2023. The company has also outlined typical representations, warranties, covenants, and indemnities associated with such a transaction. Investors should monitor the progress of regulatory approvals and the completion of the pre-closing restructuring as key indicators for the transaction's timeline and success. The press release announcing this agreement was issued on January 17, 2023.
Key Highlights
- 1S&P Global Inc. is selling its global engineering solutions business for $975 million in cash.
- 2The buyer is Allium Buyer LLC, controlled by funds affiliated with Kohlberg Kravis Roberts & Co. (KKR).
- 3The transaction is an asset and securities purchase agreement involving IHS Markit Ltd., a subsidiary of SPGI.
- 4Closing is subject to customary conditions, including regulatory approvals.
- 5A termination date for the agreement is set for July 14, 2023, with potential extensions.
- 6The divestiture is a strategic move potentially to focus on core businesses post-IHS Markit acquisition.