Thomson Reuters is selling a 51% stake in its global print business to KKR for roughly $500 million and forming a joint venture with the firm. Thomson Reuters keeps a 49% stake, its intellectual property, and full editorial control, and expects the deal to close by the end of the year.
Thomson Reuters is handing control of its global print business to KKR, selling a 51% equity interest for roughly $500 million and folding the operation into a joint venture with the investment firm. The Canadian information and technology company said Tuesday it had signed a definitive agreement to enter the venture.
What the deal covers
The business being sold provides legal and tax information in print and through Thomson Reuters' ProView electronic-book product. Thomson Reuters will retain a 49% stake in the joint venture while keeping its intellectual property rights and full editorial control over its content portfolio.
The venture itself will hold an exclusive license to distribute that content in print and on ProView. So Thomson Reuters cedes majority ownership of the unit but preserves the editorial authority and the underlying rights.
Terms and timing
Closing is subject to regulatory approvals but carries no financing conditions. As part of the transaction, Thomson Reuters agreed to provide certain financial support designed to give KKR a minimum return on its equity investment in the venture under certain circumstances.
Thomson Reuters expects the transaction to close by the end of the year, pending those approvals. For KKR, the investment firm, the deal adds a majority equity stake in the print unit.
Source: MarketScreener
Trading involves risk.
Risk Disclaimer
