The previously announced deal for a consortium led by Blackstone to acquire 55% of the equity in Thomson Reuters’ Financial & Risk (F&R) business has now officially been completed.
The deal values the F&R business, which has now been rebranded as Refinitiv, at $20 billion.
Martin Brand, senior managing director at Blackstone, says: “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, managing director at Blackstone, adds: “We are excited to complete this transaction and look forward to supporting Refinitiv’s growth and continued technology advancements in the years ahead.”
Through this investment and carve out of F&R by the Blackstone-led consortium, the new Refinitiv business expects to invest in a number of key areas to serve its customer base, which currently includes 40,000 institutions in over 190 countries. This includes further investing in content coverage, AI and analytics across its open data platforms Elektron and Eikon for buy-side, trading, wealth and banking customers. It also plans to invest in enhanced capabilities for its trading platform, as well as in indices, risk management, and fighting financial crime.
“This is a unique moment in our 160-year history as the Financial & Risk business of Thomson Reuters now steps forward as Refinitiv,” says David Craig, CEO of 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. 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 and in areas such as financial crime and ESG investment. We look forward to exciting times ahead.”
Canson Capital Partners, Bank of America Merrill Lynch, Citigroup, and JP Morgan are acting as financial advisors to the Blackstone-led consortium, while Simpson Thacher & Bartlett is acting as legal counsel.