Thomson Reuters agrees to deal with group led by Blackstone

A group led by Blackstone Group LP agreed to buy a majority stake in Thomson Reuters Corp.’s financial and risk unit in a deal that values the business at $20 billion.

Melissa Mittelman of Bloomberg News reported, “Thomson Reuters said it will receive about $17 billion in proceeds, consisting of $3 billion from the Blackstone-led group and $14 billion in debt and preferred equity. The company will use the money to repay debt, establish a new standalone company, pursue organic growth and M&A and repurchase stock, according to the statement.

“The new company also entered a 30-year agreement to pay Reuters News at least $325 million a year for its news and editorial content, according to the statement.

“Blackstone sees attractive growth in the Thomson Reuters unit’s data feed, its foreign exchange and treasury trading platforms, as well as its risk and compliance business, a person familiar with the matter said before the deal was announced. The division would also be able to improve operations more quickly as a private company, the person said. The F&R unit accounted for more than half of adjusted earnings before interest, taxes, depreciation and amortization in 2016.”

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