S&P Global Inc.SPGI has inked a deal to acquire the New York-based data analytics private company, Panjiva Inc. The terms and conditions of the buyout remain undisclosed. S&P Global's management expects the deal to help enhance its Global Market Intelligence's data and analytical offerings for diverse customers throughout the world, generating higher top-line growth.
Panjiva - a leader in machine learning and data analytics - provides deep, differentiated, sector-relevant insights on global supply chains, leveraging data science and technology to make sense of large, unstructured datasets. It offers customers macro data covering 95% of global trade flows and transactional data covering 35% of the same. The transaction, therefore, is likely to be profitable for S&P Global's future earnings expectations.
However, S&P Global does not expect the deal to have any material impact on its adjusted earnings per share in 2018 and is likely to be accretive in 2019 once the return on capital invested exceeds the company's hurdle rate post integration.
By and large, market prospects too seem to be favorable for the acquirer on the back of Panjiva's core strength in leveraging machine intelligence in combining 1 billion transaction records into a proprietary supply-chain graph that will be attributable to S&P Global's market intelligence segment. It provides risk evaluation, investment research and data to potential investors, corporations, governments, financial institutions, investment managers and financial advisors globally.
S&P Global has outperformed the industry in the last three months, with an average return of 15.1% compared with growth of 6.3% for the latter.
S&P Global has a Zacks Rank #2 (Buy). Other top-ranked stocks worth considering in the industry include The Dun & Bradstreet Corporation DNB , INTERTEK GP PLC IKTSY and TransUnion TRU , each carrying Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Dun & Bradstreet has an expected long-term earnings growth rate of 6%. It exceeded estimates in each of the trailing four quarters with an average beat of 11.7%.
INTERTEK GP has an expected long-term earnings growth rate of 12%.
TransUnion has an expected long-term earnings growth rate of 10%. It exceeded estimates in each of the trailing four quarters with an average beat of 5.2%.
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