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.
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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