Thomson Reuters To Sell I.P. & Science Business To Onex & Baring

(RTTNews) - Thomson Reuters (TRI, TRI.TO) Monday said it has entered into a definitive agreement to sell its Intellectual Property & Science business to private equity funds affiliated with Onex Corp. and Baring Private Equity Asia for $3.55 billion in cash. The Intellectual Property & Science business portfolio includes Web of Science, Thomson CompuMark, Thomson Innovation, MarkMonitor, Thomson Reuters Cortellis and Thomson IP Manager.

The sale is subject to the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act and other regulatory and customary conditions.

Thomson Reuters noted that Onex and Baring Asia have obtained debt and equity commitments for the transaction.

Thomson Reuters expects to use about $1 billion of the net proceeds to buy back shares, as per its already announced $1.5 billion buyback programme, and the balance to pay down debt and reinvest in the business.

Guggenheim Securities, LLC and J.P. Morgan Securities LLC are acting as financial advisors, while Allen & Overy LLP is acting as legal counsel to Thomson Reuters.