IHS to Acquire iSuppli Corporation; Announces Full 2011 Financial Guidance
ENGLEWOOD, Colo.-- November 02, 2010 -- IHS Inc. (NYSE:IHS), a leading global source of critical information and insight, today announced it has signed a definitive agreement to acquire iSuppli Corporation, the global leader in technology value chain research and advisory services. The transaction is expected to be completed on or before November 15, 2010. “This acquisition is an excellent complement to the existing IHS Product Design and Supply Chain business, and further builds our position as a key information provider in the electronics, manufacturing and supply chain markets”
.“This acquisition is an excellent complement to the existing IHS Product Design and Supply Chain business, and further builds our position as a key information provider in the electronics, manufacturing and supply chain markets,” said IHS Chairman and Chief Executive Officer Jerre Stead. “Combined with the IHS electronic components information business, and our global commodity and economic outlooks, customers will have access to a full suite of robust information services across the entire electronics value chain.”
iSuppli is the global leader in electronics technology research and advisory services serving a wide variety of market segments including computer platforms, automotive, consumer electronics and both wired and wireless communications. Product offerings range from electronic component research to device-specific application market forecasts, from teardown analysis to consumer electronics, and from display device and systems research to hardware design forecasting.
iSuppli serves companies involved in high-tech services, consumer electronics, multi-national industrial conglomerates, financials, and governments. iSuppli has successfully expanded their capabilities to encompass the full electronics value chain from fundamental electronic component supply to end-market demand. This complete value chain view is critical to operating and investment decisions of electronics manufacturers and across many core IHS market verticals which rely on electronics and electronic components.
“iSuppli was founded with a dedication to helping our clients improve performance in the electronics value chain by providing facts and analysis for success,” said iSuppli President and Chief Executive Officer Derek Lidow. “Our business strategy, team of industry veterans combined with our strong commitment to customers and colleagues are excellent complements to IHS, and we look forward to joining with them to deliver the most accurate and trusted electronics information and insight to customers around the globe.”
Stead added: “Taking advantage of existing IHS expertise, the acquisition of iSuppli will help us develop new products and services for a variety of the vertical markets we serve. In addition, we are acquiring an important asset base of analysts and researchers, as well as customers across Europe, in China, Japan, Korea and Taiwan.”
The acquisition of iSuppli is subject to closing conditions contained in the definitive agreement.
Outlook (forward-looking statement)
For the year ending November 30, 2010, IHS is reaffirming its revenue, Adjusted EBITDA and Adjusted EPS guidance and expects:
- All-in revenue in a range of $1.06 billion to $1.07 billion;
- All-in adjusted EBITDA in a range of $320 million to $324 million; and
- At the midpoint of its adjusted EBITDA guidance for 2010, $2.93 of adjusted earnings per share, based on a weighted average diluted share count of approximately 65 million.
For the year ending November 30, 2011, IHS expects: •All-in revenue in a range of $1.21 billion to $1.25 billion, including four percent of revenue growth stemming from the combination of the full-year effect of the 2010 acquisitions completed through September 2010 and the projection that currency rates do not change from current levels, 3-4 percent revenue growth from the iSuppli acquisition, and 6-10 percent from organic revenue growth.
- All-in adjusted EBITDA in a range of $378 million to $388 million;
- Depreciation and amortization expense of approximately $72 million;
- Net interest expense of approximately $6 million;
- Stock-based compensation expense to be in the range of $75 million to $80 million;
- Net pension expense to be approximately $14 million;
- An adjusted tax rate of approximately 28 percent; and
- Fully diluted shares to approximate 66 million.
The above 2010 and 2011 outlook assumes constant currencies and no further acquisitions or unanticipated events.
As previously announced, IHS will hold a conference call with senior management to further discuss 2011 guidance on November 2, 2010, at 9:00 a.m. EDT. The conference call will be simultaneously webcast on the company’s website: www.ihs.com.
About IHS (www.ihs.com)
IHS (NYSE: IHS) is a leading source of information and insight in pivotal areas that shape today’s business landscape: energy, economics, geopolitical risk, sustainability and supply chain management. Businesses and governments around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS employs more than 4,400 people in more than 30 countries around the world.
About iSuppli Corporation
iSuppli Corporation is the global leader in technology value chain research and advisory services. Services afforded by iSuppli range from electronic component research to device-specific application market forecasts, from teardown analysis to consumer electronics and from display device and systems research to automotive telematics, navigation and safety systems research. More information is available at www.isuppli.com and by following us at http://twitter.com/iSuppli .
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