IHS is an information and analytics company that provides data to businesses and governments. It is acquiring Markit, a financial information services company, to merge the two firms. As part of the deal, IHS will renounce its U.S. citizenship through a process called inversion to lower its tax rate, joining other companies that have done this. Inversions allow companies to reduce their tax burden and improve financial measures like weighted average cost of capital (WACC), but they also have implications for shareholders and public policy.