Two of the financial data giants, UK's Markit and U.S.'s IHS announced on Monday, a merger where they came up with a "definitive agreement" for "an all share of equals" that will make a company with a combination of $13 billion market capitalization.  The merged company's new name will be IHS Markit, where 57% of the new company belongs to IHS shareholders and the rest will be held by Markit investors.

Both companies state that after the merger they can slash the distinguished $125 million worth of costs and estimate that the new revenue could bring an extra $100 million.

Markit was founded by Uggla, a former stockbroker in 2003 and is well-known for its purchasing managers' index (PMI) readings which gives suggestion of a growing or shrinking economies and constituent parts.  That company has more than 4,200 employees across 13 countries and in 2014 has raised $1.3 billion floating on New York's NASDAQ, according to Business Insider UK.

IHS on the other hand, is already in business since 1959 providing industry data to governments and sectors including automotive, chemicals, defense, energy, finance, healthcare and technology.  It is the chief source of analytics, insight and expertise in critical areas that mold today's business landscape. It is headquartered in Englewood, Colorado and is dedicated to maintainable, lucrative growth with employees reaching 9,000 in 32 countries around the globe, reports Automated Trader.

The closing of the transaction is expected to close in 2016's second half which is subject to standard closing conditions, encompassing regulatory approvals and IHS and Markit shareholders approval.  The said transaction will be fully taxable for IHS U.S. shareholders which enable the ability to offset capital losses against capital gains, said the Business Wire.

The legal advisors of IHS include Weil, Gotshal and Manges LLP while its financial advisors are Goldman Sachs & Co. and M. Klein.  Markit's legal advisors are Davis Polk & Wardwell LLP with its financial advisor as J.P. Morgan Securities.