Private Equity Firm Blackstone to Acquire 55% Stake in Thomson Reuters Financial and Risk Business for $17 Billion
Blackstone, one of the world’s top private equity firm, will acquire 55% stake in Thomson Reuters Financial and Risk (F&R) business for $17 billion. F&R will enter into 30-year agreement to secure access to news services provided by Reuters for a sum of at least $325 million annually.
” Thomson Reuters sell 55% stake to Private Equity Firm Blackstone for $17 Billion “
The transaction values the F&R business at $20 billion. Blackstone will fund the $17 billion acquisition via $14 billion of debt and preferred equity, and 3 billion cash equity. Thomson Reuters will also maintain full ownership of its Legal, Tax & Accounting and the Reuters News businesses. Canada Pension Plan Investment Board (CPPIB) and GIC will invest alongside Blackstone for the $17 billion transaction. Thomson Reuters plans to use the net proceeds to invest in its core Legal and Tax & Accounting businesses, reduce debts and perform share buy-backs.
Thomson Reuters expects its principal shareholder, Woodbridge, to participate in the issuer bid/tender offer and to maintain its ownership in the 50% to 60% range. The Woodbridge Company is the primary investment vehicle for members of the family of the late Roy Thomson, founder of Thomson Corporation.
About Thomson Reuters Financial and Risk business:
The F&R business provides a broad range of offerings to financial market professionals. Its global content sets include fundamentals, estimates and primary and secondary research. F&R also provides customers with tools, platforms, venues and services to enable fast, intelligent decision-making. The businesses that will comprise the new F&R partnership had 2017 revenues of approximately $6 billion.
About Thomson Reuters
Thomson Reuters is the world’s leading source of news and information for professional markets. Our customers rely on us to deliver the intelligence, technology and expertise they need to find trusted answers. The business has operated in more than 100 countries for more than 100 years. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges (symbol: TRI).
Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with over $385 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis.
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