Colorado-based information company IHS Inc. has signed a definitive agreement to acquire R.L. Polk & Co., which provides automotive information and analytics solutions, for $1.4 billion.
The transaction will be funded with 10% equity and the remainder with cash on hand, cash from an existing revolver and a new bank term loan, IHS said.
The acquisition is subject to customary closing conditions, including expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
“The acquisition of R.L. Polk brings extensive and complementary information and analytical solutions that would establish IHS as a vital strategic partner of the global automotive value chain,” IHS President and CEO Scott Key said.
Key added: “R.L. Polk has a long history of providing critical information to the automotive industry. The combination with IHS Automotive creates a comprehensive capability that will significantly enhance customers’ insights and decision processes across the full vehicle lifecycle with analytics from product planning through manufacturing, sales and into automotive aftermarkets.”
R.L. Polk consists of two divisions – Polk and CARFAX – that provide actionable market intelligence, powerful tools and analytics and extensive vehicle history data.
Polk provides mission-critical market data, analysis and tools for the entire automotive ecosystem. This division enables automotive business customers to improve, predict, analyze and measure performance.
CARFAX provides consumers and automotive dealers with vehicle history information to enhance used vehicle purchase and sales decisions. This division is the primary source of vehicle history information for cars operating in the U.S. and Canada.
M. Klein and Co. acted as strategic and financial advisor to IHS in the deal.
