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Blackstone-led consortium to buy stake in Thomson Reuters’ financial and risk business

BBR Staff Writer Published 31 January 2018

Blackstone-led consortium has agreed to acquire 55% stake in Thomson Reuters’ financial and risk (F&R) unit in a deal valued at around $20bn.

The consortium, including Blackstone, Canada Pension Plan Investment Board (CPPIB) and GIC, has entered into a partnership agreement with Thomson Reuters.

As per terms of the deal, Blackstone-led consortium will own 55% interest in a new corporation for F&R business, while Thomson Reuters will own the remaining 45% stake in the unit.

Thomson Reuters F&R is a major data and financial technology platform, which offers vital information and data analytics, supports financial transactions and connects communities of trading, investment, financial and corporate professionals.

The platform also offers regulatory and risk management solutions to enable customers predict and manage risk and compliance.

Reuters News, which is not part of the deal, will continue to operate as part of Thomson Reuters/

The new F&R unit will sign a 30-year contract to exclusively supply Reuters News via all F&R products.

Blackstone senior managing director Martin Brand said: “The F&R division has tremendous assets, including a world-leading data business, essential risk and compliance solutions, OTC trading venues, wealth management software, and a strong desktop business.

‘The partnership with Blackstone provides an opportunity to increase efficiency and accelerate revenue growth through innovation and focus on creating uniquely compelling products for F&R’s customers.”

CPPIB managing director and direct private equity head Ryan Selwood said: “This investment in F&R will broaden our portfolio in the growing financial technology space. We are very pleased to support the evolution of a global market leader.”

Image: Thomson Reuters’ Headquarters at 333 Bay Street, Toronto. Photo: courtesy of Skeezix1000.