S&P Global to Divest Its Engineering Solutions Business

Ahead of its investor day, S&P Global announced on Nov. 30 that it intends to sell its engineering solutions business. This segment represented about 3% of the firm’s revenue and with lower margins than S&P Global overall, so the segment ended up understandably being an afterthought for investors. S&P Global’s engineering solutions segment is the result of its recent merger with IHS Markit and is known for its Engineering Workbench product, which is a database of standards of technical information. We believe this segment had little overlap with the rest of S&P Global’s business and thus believe selling it makes strategic sense. We will maintain our wide moat rating and $370 fair value estimate on S&P Global’s shares.