(By Balaseshan) Information services company IHS Inc. (NYSE:IHS) is expanding its engineering specifications and standards business with the deal to buy GlobalSpec Inc., a search engine of engineering and industrial products, from Warburg Pincus LLC for $135 million.
GlobalSpec is a specialized vertical search, product information and digital media company serving the engineering, manufacturing and related scientific and technical market segments.
GlobalSpec has a global user base of more than seven million registered users – a user community that grew by 500,000 new registrants during 2011. GlobalSpec is headquartered in East Greenbush, N.Y. and employs about 230 people.
While the purchase price for GlobalSpec represents a strategic double-digit EBITDA multiple, it will enable a dramatic transformation of IHS's product design portfolio representing about 15% of its revenue.
With the acquisition of GlobalSpec, IHS will transform engineering workflows and decision making with seamless integration of information, insight and productivity tools. This market-leading workflow solution set will provide unique value to customers and drive long-term, double-digit growth at accretive margins.
GlobalSpec provides its registered users with a domain-specific search engine for more than 3,500 current product, service and technology vertical categories, a vibrant community of engineers helping other engineers solve important problems, and more than 70 product and industry e-newsletters.
The acquisition is subject to customary closing conditions, including expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
IHS closed Tuesday's regular session up 0.41% at $102.19. The stock has been trading between $67.88 and $103.25 for the past 52 weeks.