S&P Global Inc. is reportedly exploring a spinout of its Capital IQ Pro unit, a data and research platform. This potential move could lead to the creation of a new publicly listed entity valued in the high single-digit billions of dollars, according to sources familiar with the matter. The deliberations are currently in their early stages, and S&P Global could ultimately decide against the separation.
Capital IQ Pro, often referred to as CapIQ, is a widely recognized platform within the financial industry, providing extensive financial data, including information on over 60 million private companies. Its strong brand recognition and comprehensive data offerings suggest it would command a high valuation as an independent company, potentially competing with established financial information providers like FactSet Research Systems, which has a market value exceeding $11 billion.
This potential spinout aligns with CEO Martina Cheung's strategy to reshape S&P Global's portfolio, following previous moves like the acquisition of datacenterHawk and the divestment of its geoscience software. A separation would allow CapIQ to have its own corporate identity, potentially benefiting from the increasing demand for structured data driven by artificial intelligence. For S&P Global, it could mean a sharper focus on its remaining core businesses.
Investor reaction to the news has been positive, with S&P Global's stock rising following the Bloomberg report. Shares saw an increase of over 3% after the news broke. However, analysts note that while such considerations often re-rate the parent company, these are early-stage discussions and a transaction is not guaranteed. Some analysts also point out that S&P Global's stock is currently trading above a narrative fair value of $380.00, with a price-to-earnings ratio of 26.4x, which is below the US Capital Markets industry average but above its peer average and estimated fair ratio.
