Thomson Reuters completes deal with Blackstone
08 October 2018 Toronto
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Thomson Reuters has completed its deal with Blackstone for Financial & Risk Business.
Thomson Reuters received approximately US $17 billion in gross cash proceeds at the closing.
The company plans to return an aggregate of US $10 billion of these proceeds to its shareholder.
The transaction closed at an interest of 55 percent in the Thomson Reuters’ Financial & Risk business to private equity funds managed by Blackstone.
According to Thomson Reuters, an affiliate of GIC invested alongside Blackstone. The Financial and Risk business is now known as Refinitiv.
Thomson Reuters revealed that it also expects to utilise an estimated US $41 billion to cover transaction-related expenses including cash taxes, pension contributions, bond redemption costs and other fees and outflows related to the transaction.
Martin Brand, a senior managing director at Blackstone, said: “We are pleased to close this landmark partnership transaction with Thomson Reuters. Blackstone is excited to invest in Refinitiv to pursue a business plan focused on accelerating growth through innovation, in partnership with Refinitiv’s customers.”
Eli Nagler, a managing director at Blackstone, added: “We are excited to complete this transaction and look forward to supporting Refinitiv’s growth and continued technology advancements in the years ahead.”
David Craig, CEO of Refinitiv, commented: “This is a unique moment in our 160-year history as the Financial & Risk business of Thomson Reuters now steps forward as Refinitiv. We firmly believe that efficient, transparent and trusted markets are good for all and that Refinitiv’s role is at the heart of this, providing access to clean and consistent data on a global scale.”
He added: “With the backing of our investors, Refinitiv will continue to deliver the critical data, insights and open technology infrastructure that the market has come to expect while driving progress for our customers across trading, risk, banking, wealth and investment management. We look forward to exciting times ahead.”
Thomson Reuters received approximately US $17 billion in gross cash proceeds at the closing.
The company plans to return an aggregate of US $10 billion of these proceeds to its shareholder.
The transaction closed at an interest of 55 percent in the Thomson Reuters’ Financial & Risk business to private equity funds managed by Blackstone.
According to Thomson Reuters, an affiliate of GIC invested alongside Blackstone. The Financial and Risk business is now known as Refinitiv.
Thomson Reuters revealed that it also expects to utilise an estimated US $41 billion to cover transaction-related expenses including cash taxes, pension contributions, bond redemption costs and other fees and outflows related to the transaction.
Martin Brand, a senior managing director at Blackstone, said: “We are pleased to close this landmark partnership transaction with Thomson Reuters. Blackstone is excited to invest in Refinitiv to pursue a business plan focused on accelerating growth through innovation, in partnership with Refinitiv’s customers.”
Eli Nagler, a managing director at Blackstone, added: “We are excited to complete this transaction and look forward to supporting Refinitiv’s growth and continued technology advancements in the years ahead.”
David Craig, CEO of Refinitiv, commented: “This is a unique moment in our 160-year history as the Financial & Risk business of Thomson Reuters now steps forward as Refinitiv. We firmly believe that efficient, transparent and trusted markets are good for all and that Refinitiv’s role is at the heart of this, providing access to clean and consistent data on a global scale.”
He added: “With the backing of our investors, Refinitiv will continue to deliver the critical data, insights and open technology infrastructure that the market has come to expect while driving progress for our customers across trading, risk, banking, wealth and investment management. We look forward to exciting times ahead.”
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