May 31, 2024

Thomson Reuters Sells Stake in Unit to Blackstone-Led Group

The financial and risk unit, which provides research and analysis tools to financial markets professionals, had revenue of $6.1 billion in 2016, a figure that accounted for more than half of the company’s total sales. The business includes Eikon, Thomson Reuters’s flagship information terminal system.

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The Eikon system trails Bloomberg in terms of market share: Bloomberg had about a third of the market in 2016, while the Thomson Reuters service had about 23 percent, according to data from Burton-Taylor International Consulting.

Thomson Reuters, which is based in Toronto, will retain a 45 percent equity stake in the financial and risk business and full ownership of its legal, tax and accounting, and news operations, according to the statement.

Blackstone brings more than cash to the joint venture with Thomson Reuters. The private equity firm also owns Ipreo, another financial data firm, which it and Goldman Sachs bought for $975 million in 2014.

“We are excited to partner with Thomson Reuters — one of the most trusted companies in financial technology,” said Martin Brand, a senior managing director at Blackstone.

Shares in Thomson Reuters were up more than 7 percent to $46.52 at the close of trading on the New York Stock Exchange on Tuesday.

Correction: January 30, 2018

An earlier version of this article misstated which day shares in Thomson Reuters rose more than 8 percent after it was reported that the company was in discussions the Blackstone Group about deal for a stake Thomson Reuters’s financial and risk division. It was on Tuesday, not Thursday.

Follow Chad Bray on Twitter: @Chadbray.

Michael J. de la Merced contributed reporting.

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Article source: https://www.nytimes.com/2018/01/30/business/dealbook/blackstone-thomson-reuters-talks.html?partner=rss&emc=rss

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