A consortium led by Blackstone (NYSE:BX) has announced that private equity funds managed by Blackstone – together with Canada Pension Plan Investment Board (CPPIB) and GIC – have completed the previously announced partnership transaction with information giant Thomson Reuters (NYSE:TRI) for Thomson Reuters’ Financial & Risk (F&R) business.
The Blackstone-led consortium now owns 55 percent of the equity in a new corporation created to hold the F&R business, and Thomson Reuters retains a 45 percent equity stake, at an overall valuation of US$20 billion. The Financial & Risk business is now known as Refinitiv.
Refinitiv is one of the world’s largest providers of financial markets data and infrastructure, providing leading data and insights, trading platforms, and open data and technology platforms that connect communities of trading, investment, financial and corporate professionals. It also provides leading regulatory and risk management solutions to help customers anticipate and manage risk and compliance.
Martin Brand, a Senior Managing Director at Blackstone, said:
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, a Managing Director at Blackstone, added:
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 leading platforms for trading, as well as in indices, risk management, and fighting financial crime.
David Craig, CEO of Refinitiv
This is a unique moment in our 160-year history as the Financial & Risk business of Thomson Reuters now steps forward as Refinitiv,” said 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, BofA Merrill Lynch, Citigroup, and J.P. Morgan are acting as financial advisors to the Blackstone-led consortium, and Simpson Thacher & Bartlett LLP is acting as legal counsel to the Blackstone-led consortium.