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IHS raises outlook, says looking for more acquisitions
August 13, 2013 / 10:12 AM / 4 years ago

IHS raises outlook, says looking for more acquisitions

(Reuters) - IHS Inc IHS.N, publisher of Jane’s Defence Weekly, raised its forecast for the year ending November 30 to account for its purchase of R.L. Polk & Co, owner of used-car history provider Carfax, and said it would continue to look for small acquisitions.

IHS said it now expected full-year adjusted earnings of $4.74-$5.00 per share on revenue of $1.80 billion-$1.82 billion.

In June, IHS forecast adjusted earnings of $4.23-$4.43 per share on revenue of $1.66 billion-$1.73 billion.

Analysts on average expect earnings of $4.30 per share on revenue of $1.67 billion, according to Thomson Reuters I/B/E/S.

“We will selectively add smaller acquisitions both in energy and automotive,” Chief Executive Scott Key told Reuters on Tuesday.

IHS struck a deal in June to buy privately held auto industry data provider R.L. Polk for $1.4 billion.

The acquisition will add 40 to 50 cents to adjusted earnings per share for the fiscal year ending November 2014, Key said.

IHS typically buys six or seven companies a year, each with annual revenue of $20 million to $30 million, Key said.

“Polk is $400 million in revenue, and so some of the smaller deals we’ll continue to do when they make sense,” he said.

IHS, which also provides information and analysis on subjects such as product design and the environment, also bought Washington-based consultants PFC Energy in June for an undisclosed amount.

This brought IHS’s acquisitions to six this year, including four energy analysis and consulting firms.

“We also continue to see solid organic growth for the remainder of 2013, despite the lower global corporate-spend environment and the uncertainty that remains macro-economically,” Key said in a statement.

Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Ted Kerr

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