IHS Markit to buy Ipreo in $1.86bln deal

SAN FRANCISCO: Data firm IHS Markit Ltd said on Monday it will buy Ipreo from private equity funds Blackstone Group LP and Goldman Sachs Group Inc for $1.86 billion to expand its financial services operations.

IHS, whose diverse set of businesses range from selling data on automotive and technology industries to publishing Jane´s Defence Weekly, said the deal will be funded through debt financing from HSBC.

The deal is a windfall for the buyout arm of Blackstone and Goldman Sachs, which acquired Ipreo from KKR & Co LP in April 2014 for about $975 million.

The valuation of Ipreo, whose products are used by investment bankers working on new stock market listings, has quadrupled since 2011 when KKR took over Ipreo in a $425 million deal.

IHS Markit said it found Ipreo´s alternative investment business, which includes private equity, hedge funds, real estate and commodities, a fast-growing sector.

"Alternative segment is very attractive to us and over $10 trillion of assets under management invested in alternatives and the sector continues to show strong growth, expected to reach over $20 trillion by 2025," said senior executive Adam Kansler, in a conference call with analysts.