A consortium led by Blackstone made an announcement saying private equity funds controlled by Blackstone alongside with Canada Pension Plan Investment Board(CPPIB) and GIC have rounded up the recently announced partnership transaction with information giant Thompson Reuters (NYSE: TRI) for Thompson Reuters’ Financial & Risk (F&R) business.
The Blackstone-led consortium is now having 55 percent of the equity with a new corporation established to organize the F&R business, and Thompson Reuters possess a 45 percent equity stake, at a comprehensive valuation of US$20 billion. The Financial & Risk business is now called as Refinitiv.
Refinitiv is among of the world’s biggest providers of financial markets data and infrastructure, providing insights and leading data, trading platforms, technology and open trading platform that associate communities of trading, investment, financial and corporate professionals. It also involves providing regulatory and risk management solution to help individuals plan on and manage risk and compliance.
What were Blackstone comments?
Martin Brand, a Senior Managing Director at Blackstone mentioned that:
We are appreciative to close this landmark partnership transaction alongside with Thompson Reuters. Blackstone is excited to invest in Refinitiv to pursue a business plan concentrated on accelerating growth through innovation, in partnership with customers belonging to Refinitiv.
Eli Nagler, a Managing Director at Blackstone, furthered:
We are appreciative to finalize this transaction and look forward to supporting the growth of Refinitiv and continued technology advancement in the years ahead.
Through investment and capture of F&R by the Blackstone-led consortium, the newly established business expects to make an investment in a number of particular areas to provide its customer base, which currently involves 40, 000 institutions across 190 countries. This includes further investing in content coverage, AI with the analytics across its open data platforms Elektron and Eikon for trading, wealth and buy-side, Forex brokers and banking customers. It also plans to invest in upgraded capabilities for its leading platforms for trading, as well as in indices, fighting financial crime and risk management
How did Refinitv describe that?
David Craig, CEO of Refinitiv mentioned that:
This happened to be a unique moment in our 160 years history as the financial & Risk business of Thompson Reuters is been introduced as Refinitiv. We strongly believe that efficient, trusted markets and transparent are perfect for all and the role of Refinitiv is involve in this, providing access to clean and consistent on a global scale. With the help of our investors, Refinitiv will continue to provide the critical data, insights and open technology infrastructure that is required by the market which has come to an expectation from our customers across trading, banking, wealth, risk and investment management including areas like financial crime and ESG investment. We look forward in interesting times ahead.