Thursday, IHS Inc. (IHS), a provider of critical information, decision-support tools and related services, announced it has entered into a definitive agreement to acquire Global Insight, Inc., for $200 million. The transaction is a combination of 60% cash and 40% IHS common stock. The transaction also include a lock-up agreement that restricts the salability of IHS shares with 10% of the shares restricted for one year, 50% for two years and 40% for three years.
The Waltham, Massachusetts-based Global Insight has estimates revenues of about $120 million in 2008 and is currently operating with high single-digit adjusted earnings before interest, taxes, depreciation and amortization or EBITDA margins. The purchase price represents a 9-10 times multiple of expected 2009 adjusted EBITDA.
The Englewood, Colorado-based HIS said that at the closing of the deal, the company's senior vice president and president and chief operating officer of Jane's Information Group Scott Key would relocate to the Boston area and become president and chief operating officer of Global Insight. Key and his team will work to align Global Insight with the other IHS Insight businesses.
HIS also said that Kasputys will become chairman Emeritus of Global Insight and join IHS as chairman of the company's newly formed IHS insight advisory board.
HIS closed Thursday's regular trading session at $60.50, down $0.49 or 0.80%. Further, the stock lost $3.51 in the after-hour trade.
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