Thomson Reuters (TSE:TRI) concludes Clarient, Avox acquisitions

Thomson Reuters Corp (TSE:TRI, Mkt cap 42.23B, P/E 32.41, Div/yield 0.45/3.13, EPS 1.79, Shares 727.23M) confirmed on Monday that it has completed its acquisitions of Clarient and Avox from the Depository Trust & Clearing Corporation (DTCC) and its bank partners.

When the deal was announced last month, the news and information group said that it would strengthen its Know Your Customer (KYC) managed service franchise, which now serves 23 financial institutions worldwide.

US-based Clarient focuses on compliance, KYC and client reference data, while UK-based Avox supplies legal entity data, such as hierarchies and identifiers on financial entities globally.

The acquisitions are said to support Thomson Reuters' aim to be a leading provider and trusted source of KYC and legal entity information.

"The evolving global regulatory environment continues to emphasize anti-money laundering requirements for buy-side firms and corporate institutions to know their customers and all their related relationships when conducting global business," explained Hugh Stewart, research director at Chartis Research. "These regulatory requirements are spurring a growing demand for firms such as Thomson Reuters to develop global solutions that not only help customers accelerate client on-boarding and comply with regulations, but also reduce costs, improve client experience and extend support to the whole client life cycle."

"Completing the acquisitions of Clarient and Avox affords a tremendous opportunity for us to work together in our shared goal of creating best-in-class KYC and legal entity data due diligence standards that enhance our customers and their customers' ability to conduct global business," commented Steve Pulley, managing director of Risk Managed Services at Thomson Reuters. "Clarient and Avox's deep specialty knowledge and capabilities will enhance our portfolio of solutions, and we welcome our esteemed new colleagues to the Thomson Reuters family."

No financial details were disclosed.

Thomson Reuters Corporation (TSE:TRI) is a provider of intelligent information for businesses and professionals. The Company is organized into four business units: Financial & Risk, Legal, Tax & Accounting and Intellectual Property & Science. Financial & Risk business unit provides news, information and analytics, enabling transactions and bringing together financial communities. It also provides regulatory and operational risk management solutions. Legal business unit provides online and print information, decision tools, software and services that support legal, investigation, business and government professionals. Tax & Accounting business unit provides integrated tax compliance and accounting information, software and services for professionals in accounting firms, corporations, law firms and government. Intellectual Property & Science business unit provides intellectual property and scientific information, decision support tools and services. More from Reuters »

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Thomson Reuters Corp (TSE:TRI) to boost KYC franchise with Clarient, Avox acquisitions

Thomson Reuters Corp (TSE:TRI, Mkt cap 42.80B, P/E 29.45, Div/yield 0.46/3.11, EPS 1.99, Shares 734.73M) is bolstering its Know Your Customer (KYC) managed service franchise with the acquisition of Clarient and Avox from the Depository Trust and Clearing Corporation (DTCC) and its bank partners.

US-based Clarient was set up in 2014 by DTCC together with six banks (Barclays, BNY Mellon, Credit Suisse, Goldman Sachs, JP Morgan and State Street) to focus on compliance, KYC and client reference data.

Thomson Reuters Corp TSE:TRI boost KYC franchise Clarient, Avox acquisitions

Thomson Reuters Corp (TSE:TRI) to boost KYC franchise with Clarient, Avox acquisitions

UK-based Avox supplies legal entity data, hierarchies and identifiers on financial entities globally for its clients.

Upon closure of the deal, Thomson Reuters will integrate the firms into its portfolio of risk management, compliance and reference data offering, strengthening its three-year old KYC managed service, which now serves 23 financial institutions worldwide.

Steve Pulley, MD, risk managed services, Thomson Reuters, believes the firm is now positioned to "lead the next wave of development in this exciting space", and the deal builds upon the progress it has made with its legal entity and KYC managed service franchise over the past three years.

Although financial terms were not disclosed, Goldman Sachs said it is excited with the outcome of the deal and is looking forward to working with Thomson Reuters to "deliver on the vision of centralized KYC as a driver of increased efficiency, robust compliance and improved experience for our customers."

Meanwhile, Clarient CEO Matt Stauffer said he is confident that the partnership with Thomson Reuters yield "a holistic solution that supports and accelerates the industry's desire to mutualize client data solutions."
 

Thomson Reuters Corporation (TSE:TRI) is a provider of intelligent information for businesses and professionals. The Company is organized into four business units: Financial & Risk, Legal, Tax & Accounting and Intellectual Property & Science. Financial & Risk business unit provides news, information and analytics, enabling transactions and bringing together financial communities. It also provides regulatory and operational risk management solutions. Legal business unit provides online and print information, decision tools, software and services that support legal, investigation, business and government professionals. Tax & Accounting business unit provides integrated tax compliance and accounting information, software and services for professionals in accounting firms, corporations, law firms and government. Intellectual Property & Science business unit provides intellectual property and scientific information, decision support tools and services. More from Reuters »

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Thomson Reuters (TSE:TRI) to cut 2,000 jobs as part of restructuring

Thomson Reuters Corp (TSE:TRI, Mkt cap 42.19B, P/E 27.12, Div/yield 0.46/3.30, EPS 2.03, Shares 736.56M) has announced a restructuring that will reduce its global workforce by 4% as part of efforts to help “simplify and streamline” the business.

About 2,000 employees will be affected by the restructuring, which will take place across 39 countries and 150 locations, the news and information company said on Tuesday.

Thomson Reuters TSE:TRI cut jobs

Thomson Reuters (TSE:TRI) to cut 2,000 jobs as part of restructuring

Employees in the Financial & Risk business and the Enterprise, Technology & Operations Group will be most affected. Chief executive Jim Smith told employees that there will be no decrease in headcount in the Reuters newsroom.

The announcement coincided with the release of Thomson Reuters’ financial results for the third quarter, showing net income of $286m or 36 cents per share, compared with $293m or 36 cents per share in the same period a year earlier.

Revenue rose 1% to $2.74bn before the impact of foreign currency, and was flat when currency effects were factored in.

The company said that it plans to record a charge of approximately $200m to $250m in the fourth quarter of 2016 to cover the costs of the restructuring.

The changes are part of its multi-year effort to streamline the business, Smith said in an interview with Reuters News.

“It’s about simplification and taking out bureaucracy and taking out layers all of which have added complexity and slowed us down,” he said. “These actions are not driven by any reaction to market conditions or in any way coming on the back of underperformance.”

As a result of the fourth-quarter charge, Thomson Reuters lowered its 2016 forecast for underlying operating profit margin to between 16% and 17%, from a range of 18.4% to 19.4%.

Thomson Reuters Corporation is a provider of intelligent information for businesses and professionals. The Company is organized into four business units: Financial & Risk, Legal, Tax & Accounting and Intellectual Property & Science. Financial & Risk business unit provides news, information and analytics, enabling transactions and bringing together financial communities. It also provides regulatory and operational risk management solutions. Legal business unit provides online and print information, decision tools, software and services that support legal, investigation, business and government professionals. Tax & Accounting business unit provides integrated tax compliance and accounting information, software and services for professionals in accounting firms, corporations, law firms and government. Intellectual Property & Science business unit provides intellectual property and scientific information, decision support tools and services. More from Reuters »

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Thomson Reuters (TSE:TRI) sells Intellectual Property & Science Business for $3.55bn

Thomson Reuters Corp (TSE:TRI, Mkt cap 40.52B, P/E 26.96, Div/yield 0.44/3.21, EPS 2.02, Shares 741.16M) has completed the sale of its Intellectual Property & Science (IP&S) business, a deal first announced in July.

The news and information company said on Monday that the IP&S business was purchased by Onex Corporation and Baring Private Equity Asia for $3.55bn in cash.

Thomson Reuters sells Intellectual Property Science Business

Thomson Reuters (TSE:TRI) sells Intellectual Property & Science Business for $3.55bn

The divested business provides comprehensive intellectual property and scientific information. Its brands include Web of Science, Cortellis, Thomson Innovation, Derwent World Patents Index, Thomson CompuMark, MarkMonitor and Thomson IP Manager and Techstreet.

Following the sale of the business, the newly independent company will be known as Clarivate Analytics.

“We’re excited to move forward as an expert, objective and agile source of authoritative knowledge,” commented Vin Caraher, CEO of Clarivate Analytics. “Our solutions sit at the center of almost every major university, government and business, supporting those working within the lifecycle of innovation who strive to make a difference. As a market leader, we look forward to building on our strong foundation as an independent company.”

When the deal was announced on July 11, Jim Smith, president and CEO of Thomson Reuters, said: “With the completion of this divestiture, Thomson Reuters will be even more focused on operating at the intersection of global commerce and regulation.”

Thomson Reuters is now organized in three business units supported by a corporate center — Financial & Risk, Legal, and Tax & Accounting. The company also operates the Reuters news agency.

Thomson Reuters plans to use about $1bn of the net proceeds from the sale to buy back shares as part of its previously announced $1.5bn share buyback program. The balance will be allocated to paying down debt and reinvesting in the business.

Thomson Reuters Corporation is a provider of intelligent information for businesses and professionals. The Company is organized into four business units: Financial & Risk, Legal, Tax & Accounting and Intellectual Property & Science. Financial & Risk business unit provides news, information and analytics, enabling transactions and bringing together financial communities. It also provides regulatory and operational risk management solutions. Legal business unit provides online and print information, decision tools, software and services that support legal, investigation, business and government professionals. Tax & Accounting business unit provides integrated tax compliance and accounting information, software and services for professionals in accounting firms, corporations, law firms and government. Intellectual Property & Science business unit provides intellectual property and scientific information, decision support tools and services. More from Reuters »

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Thomson Reuters profits rise, as revenues fall

Financial information giant Thomson Reuters Corp (TSE:TRI, Mkt cap 41.89B, P/E 16.36, Div/yield 0.44/3.27, EPS 3.30, Shares 776.81M) has reported a profit increase, despite weaker-than-expected revenues – the result of a strong dollar, according to the Q3 statement

Thomson Reuters profits rise revenues fall

Thomson Reuters’ profits rise, as revenues fall

The New York-based firm, which provides businesses and individuals with financial markets data, saw net profit rise 17% in the third quarter to $293 million, although the jump was at odds with its revenues, which slumped by 4.1% to $2.98 billion – a figure lower than forecast. Judged on constant-currency terms, however, revenues were marginally up, AFP notes.

Thomson Reuters, which has cut thousands of jobs since 2013, said its bottom line was leveraged by “efficiency initiatives, which were partially offset by the impact of foreign currency.”

“I am pleased to report another quarter of steady progress,” said James Smith, president and chief executive.

“I am encouraged by the way we continue to execute against our key priorities, by the progress towards our financial targets and especially by the underlying performance of our subscription revenues.”

The financial arm, which provides terminals used by market professionals, witnessed a 6.8% decline in revenue to $1.5 billion, attributed primarily to currency fluctuations.

Since September, the unit has faced new competition in the shape of Symphony Communications, backed by major banks including Goldman Sachs, JPMorgan Chase, Societe Generale, Natixis and Google.

Meanwhile, Reuters news agency saw revenues drop 6.3% $74 million. Once again, however, the revenues increase on a constant-currency basis.

Thomson Reuters Corporation is a provider of intelligent information for businesses and professionals. The Company is organized into four business units: Financial & Risk, Legal, Tax & Accounting and Intellectual Property & Science. Financial & Risk business unit provides news, information and analytics, enabling transactions and bringing together financial communities. It also provides regulatory and operational risk management solutions. Legal business unit provides online and print information, decision tools, software and services that support legal, investigation, business and government professionals. Tax & Accounting business unit provides integrated tax compliance and accounting information, software and services for professionals in accounting firms, corporations, law firms and government. Intellectual Property & Science business unit provides intellectual property and scientific information, decision support tools and services. More from Reuters »

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The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.