Wall Street has smiled on the four deals IHS (NYSE:IHS) has completed thus far this year. In exchange for the $200 million it's shelled out in acquisitions, IHS has seen its shares increase 18% since the beginning of 2007. But to keep that growth moving, management will have to keep hunting for new targets to acquire.

IHS develops sophisticated databases and decision tools for industries such as energy, aerospace, and engineering. Its marquee customers include Intel (NASDAQ:INTC), General Motors (NYSE:GM), and ExxonMobil (NYSE:XOM).

Boosted by acquisitions, second-quarter revenues increased 16.5% to $154.9 million. Net income surged 44% to $18.6 million, or $0.32 per share, in the same period. For the first half of 2007, cash flow from operations totaled about $65.8 million, and the company's got $212.3 million in the bank.

Besides its cash hoard, IHS's $2.6 billion market cap is also helpful in pulling off deals. Look at last week's acquisition of Jane's Information Group, which was funded by the $183.5 million in shares IHS issued to do the deal.

Founded more than 100 years ago, Jane's maintains databases and specialized publications for the defense, aerospace, and security sectors. Over the past couple of years, the company has shifted its print business to digital forms. That's resulted in low-single-digit revenue growth, but IHS believes it can bump up the growth rate to the low double digits. In addition, IHS's proven cost-cutting prowess should help the combined companies reap considerable savings.

There should also be considerable cost savings. IHS has demonstrated that it knows how to find efficiencies in its platform.

As I've mentioned in prior articles, IHS has a solid business with strong barriers to entry, a compelling value proposition, and a predictable recurring revenue stream. The Jane's deal should also be a nice boost to its platform. All in all, Foolish investors might want to consider carving off a slice of IHS for themselves.

Further Foolishness:

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Fool contributor Tom Taulli, author of The Complete M&A Handbook, does not own shares mentioned in this article. He is currently ranked 1,831 out of 30,414 in Motley Fool CAPS.