IHS has completed its acquisition of R.L. Polk & Co. R.L. Polk & Co. consists of two divisions – Polk and CARFAX – that provide market intelligence, tools and analytics and vehicle history information. . Previously, IHS had announced its intent to acquire R.L. Polk & Co. on June 9, 2013; closing occurred on July 15.
The total deal price is $1.4 billion. 90% cash and 10% equity. The stock issuance has a 2-year lock up. 50% of shares can be sold after year one and 100% of shares can be sold after year two
R.L. Polk is headquartered in Detroit and has $400 million of current annual revenue, 75% recurring revenue with 90%-plus renewal rates. 60% of its revenues come from the CARFAX brand and 40% from the Polk Division.
The company is principally focused in North America, with 9% of sales in EMEA and 3% in APAC. It has an adjusted EBITDA margin in mid-20 percent range.
“Now that R.L. Polk & Co. is part of IHS Automotive, their comprehensive information on vehicle registrations, ownership and repair allow us to offer auto makers, automotive parts and technology suppliers and dealers an unparalleled suite of products and services that span from portfolio planning to the end of a vehicle’s life,” said Scott Key, IHS president and CEO. “No one has connected automotive information so comprehensively in markets around the world, or created the analytics solutions and tools that we are currently developing to support the strategic decisions of our customers.
“With this acquisition, IHS truly becomes the scaled, global player in the capital-intensive automotive information industry, which also relies heavily on electronics, chemicals, plastics and energy,” Key continued. “The addition of Polk and CARFAX furthers our vision to become the source of information, insight, expertise and knowledge across all of our target industry sectors and to provide converged solutions that create exceptional value for customers.”
Key added that IHS intends to expand Polk and CARFAX globally, building on IHS infrastructure and presence in EMEA, APAC and high-growth markets in Brazil, India, Russia and the Middle East and the combined information and expertise of these great assets.
“The combination of IHS and R.L. Polk & Co. clearly strengthens both companies and creates more growth and greater opportunities to increase value for our customers,” said Stephen Polk, chief executive officer of R.L. Polk & Co. “We look forward to enhancing key information and insight on which our customers have come to rely to make critical decisions.”
USA, Englewood, CO & Detroit, MI
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