Automotive Data Firm R.L. Polk to be Acquired for $1.4 Billion

Business analysis company IHS Inc. said it will acquire automotive data firm R.L. Polk & Co. for $1.4 billion.

R.L. Polk generates about approximately $400 million in annual revenue and is growing in the mid-to-high single digits, according to IHS Inc.

“Approximately 75% of [R.L. Polk’s] overall revenue is recurring in nature, with approximately 90% renewal rates, attractive margins and high levels of free cash flow conversion,” IHS chief financial and IT officer Todd Hyatt said in a statement.

R.L. Polk is the parent company of Carfax, the main source of vehicle history information for cars in the United States and Canada.

The information and products provided by Polk complement “existing IHS Automotive solutions and open up large adjacent markets,” according to IHS.