S&P Global Strengthens Market Intelligence with Major Acquisition

S&P Global Expands Market Opportunities
S&P Global Inc. (NYSE: SPGI) has taken a significant step forward by declaring its intent to acquire With Intelligence for a staggering $1.8 billion. This acquisition aims to elevate S&P Global's position as a leading provider of private markets intelligence, a sector poised for substantial growth.
Enhancing Data Solutions in Private Markets
With alternative assets expected to surge to $40 trillion within the next few years, this acquisition positions S&P Global to innovate and bring greater transparency to the private markets. By integrating With Intelligence's capabilities, S&P Global will effectively deliver connected and comprehensive data and intelligence solutions.
Strategic Vision for Growth
The company foresees that this transaction will complement its existing strengths in ratings, benchmarks, data, analytics, and workflow solutions. As S&P Global embraces this new venture, it aims to reach new market segments, harnessing With Intelligence’s expertise.
Projected Financial Impacts
Although the acquisition is anticipated to be slightly dilutive to S&P Global's GAAP diluted EPS initially, projections indicate it could contribute approximately $130 million in revenue by 2025. Moreover, organic annual contract value growth is expected to be in the high teens, indicating a robust financial outlook.
Leaders Share Their Perspectives
Saugata Saha, President of S&P Global Market Intelligence, emphasized the importance of this acquisition. He stated that the data provided by With Intelligence will not only complement offerings like S&P Capital IQ Pro but also enhance the clarity and confidence necessary for stakeholders navigating the complex landscape of private markets.
Anticipated Closing Timeline
The expected timeline for closing this transaction is targeted for late 2025 or early 2026, contingent upon typical regulatory approvals and conditions. As the acquisition unfolds, S&P Global is preparing to integrate With Intelligence’s resources into its operational framework seamlessly.
Investor Insights and Market Reaction
Currently, investors have shown varied responses to the news, with shares of SPGI trading slightly lower at $483.60. For those looking to diversify their portfolios, exposure to S&P Global can also be gained through the iShares U.S. Broker-Dealers & Securities Exchanges ETF (NYSE: IAI) and the Sterling Capital Focus Equity ETF (NYSE: LCG).
Frequently Asked Questions
What is the acquisition deal amount for With Intelligence?
S&P Global is acquiring With Intelligence for $1.8 billion.
When does S&P Global expect to close the transaction?
The deal is anticipated to close in late 2025 or early 2026, subject to regulatory approvals.
How will this acquisition affect S&P Global's market presence?
This move is expected to enhance S&P Global's capabilities in providing private market intelligence and broaden its market reach.
What are the projected revenue impacts from the acquisition?
S&P Global estimates the acquisition will contribute approximately $130 million in revenue by 2025.
What ETFs can investors use to gain exposure to S&P Global?
Investors can consider the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) and the Sterling Capital Focus Equity ETF (LCG) for exposure.
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