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UPDATE 2-Thomson Reuters to sell IP & science unit for $3.55 bln

Published 2016-07-11, 09:40 a/m
© Reuters. UPDATE 2-Thomson Reuters to sell IP & science unit for $3.55 bln
ONEX
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TRI
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(Adds details about business, value of deal, comments from CEO
Jim Smith)
By Jessica Toonkel
July 11 (Reuters) - Thomson Reuters Corp TRI.TO on Monday
said it agreed to sell its intellectual property and science
business to private equity firms Onex Corp OCX.TO and Baring
Private Equity Asia for $3.55 billion in cash.
The business, which has 3,200 employees, provides
intellectual property and scientific information and associated
tools and services to governments, universities and companies.
"This divestiture marks an important step in sharpening our
focus on the intersection of global commerce and regulation,"
wrote Chief Executive Officer Jim Smith, in an e-mail to
employees Monday morning. "We expect to use the proceeds from
the transaction to buy back shares and the balance to pay down
debt and reinvest in the business."
The news and data provider said in November it was exploring
strategic options for the unit, which had revenue of about $1
billion in 2014.
Analysts have estimated that the business would be valued at
more than $3 billion, or more than 10 times EBITDA (earnings
before interest, tax, depreciation and amortization).
The division contributed about 8 percent of Thomson Reuters'
total revenue of $12.2 billion in 2015.
Reuters had earlier reported that the company was discussing
selling the units in parts to facilitate a divestiture that
could raise more than $3 billion
Thomson Reuters is the parent company of Reuters News.
Guggenheim Securities and J.P. Morgan Securities were
financial advisers to Thomson Reuters. Allen & Overy LLP was
legal counsel.

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