Thomson Reuters to rename financial and risk unit
LONDON, United Kingdom – Less than a week after its sale to US private equity giant Blackstone received an antitrust green light from the European Commission, Thomson Reuters Corporation’s (TRI.TO) Financial and Risk unit, announced it will be renamed Refinitiv.
This was the latest development in the blockbuster deal which saw Blackstone agreeing to pay $17 billion for a majority stake in the financial services unit of Thomson Reuters.
In a report from the AFP earlier, it said the deal would give Blackstone a controlling stake in the unit that delivers financial research and other tools to market professionals through dedicated terminals and subscription services.
The rechristening will take effect once the deal closes this year, the company said in a statement on Friday, July 27.
Blackstone would get a 55 percent stake in the Finance & Risk (F&R) division, which competes with services from Bloomberg and others.
A statement from Thomson Reuters said: Blackstone is making its biggest bet since the financial crisis with the $20 billion deal, which pits co-founder Stephen Schwarzman against fellow billionaire and former New York Mayor Michael Bloomberg in the financial information industry.
The Thomson Reuters unit provides information and related services to financial services professionals. David Craig, current head of Financial and Risk, will be CEO of Refinitiv, said the statement.
Thomson Reuters is the parent company of Reuters News.
The F&R division has also pledged at least $325 million a year for 30 years to Reuters News.
"This deal strengthens F&R and should accelerate its growth and benefit its customers across the sell-side, buy-side and trading venues," said Jim Smith, president and chief executive officer of Thomson Reuters.
Martin Brand, a senior managing director at Blackstone, said: "We are excited to partner with Thomson Reuters – one of the most trusted companies in financial technology."
Under the deal, Reuters would receive a $3 billion cash equity contribution while $14 billion of debt and preferred equity would be incurred by the partnership.
In its latest quarterly results, Thomson Reuters reported revenues of $73 million in its "other category," which includes the Reuters news agency.
The financial service Eikon from Thomson Reuters relies on news from the Reuters agency, a competitor of AFP. – Rappler.com