IHS Markit to Purchase Ipreo05.21.2018 By Rob Daly Editor-at-Large
Ipreo, a leading financial services solutions and data provider, today announced the signing of a definitive agreement to be acquired by IHS Markit, a world leader in critical information, analytics and solutions. IHS Markit is acquiring the business from private equity funds managed by Blackstone and by the Goldman Sachs Merchant Banking Division (“Goldman Sachs”), for $1.855 billion.
Scott Ganeles, Chief Executive Officer of Ipreo, said, “Our business has grown immensely under Blackstone and Goldman Sachs’ ownership, and we look forward to our next stage of expansion and innovation with IHS Markit. IHS Markit will be a tremendous partner as we continue to build on our position as a leading provider to global capital markets participants.”
Kevin Marcus, President and COO of Ipreo, said, “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.”
Lance Uggla, chairman and CEO of IHS Markit, said, “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,” Uggla said. “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.”
Since Blackstone and Goldman Sachs’ investment in 2014, Ipreo has grown its revenues by nearly 60 percent. The company completed three transformative acquisitions to form its fast-growing Private Capital Markets segment, launched several major new products including an expansion into the buyside, created blockchain and data related joint ventures, and significantly expanded its presence globally.
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.”
Greg Blank, a Senior Managing Director at Blackstone, said, “We would like to thank Ipreo’s management team for their leadership over the course of our investment, and our partners Goldman Sachs Merchant Banking for their support of the company. Blackstone looks forward to maintaining a continued partnership and valued customer relationship through Ipreo together with IHS Markit in the future.”
Sumit Rajpal, Managing Director and co-head of global private equity in the Merchant Banking Division of Goldman Sachs, said, “We are delighted to have partnered with Ipreo over the past four years, and we wish them continued success and look forward to our ongoing relationship as a large customer of their services.”
Anthony Arnold, Managing Director at Goldman Sachs, said, “Under our ownership, Ipreo has made significant investments in building out their technology and product suite, especially their entry into the private capital markets space, which positions them well for continued growth.”
Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC acted as joint financial advisors, and Weil, Gotshal & Manges acted as legal counsel to Ipreo, Blackstone and Goldman Sachs Merchant Banking.
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 U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976.
The deal should boost the firm's LME operations in Germany, say officials.
The deal entails the acquisition of three of the firm's brokerage businesses.
Schwab estimates a $1.8B to $2B run-rate expense synergies within three years of the deal's close.
The acquisition extends the vendor's SaaS offerings to private debt markets.
The purchase should bolster the firm's trading technology and quantitative research.