Information giant Thomson Reuters has sold its healthcare business to private equity firm Veritas Capital in a cash deal valued at $1.25 billion, following a ten-month search for a buyer.
The division - which provides data, analytics and performance benchmarking services to companies, government agencies and healthcare professionals - was put on the market
last June, when Thomson Reuters said it ‘lacked the integration’ with its other units, and that funds raised from the sale could be better applied elsewhere in the portfolio.
The division offers a range of solutions - such as research database MarketScan, healthcare payer decision tool Advantage Suite, clinical reference Micromedex, reporting suite CareDiscovery, and hospital operating trends tool ActionOI - combined with expert analysis. In 2010, it had revenue of approximately $450m, and an operating margin of around 19%, and at the end of last year it employed about 2,100 staff.
Mike Boswood, President of the Healthcare business, said that Veritas is committed to helping the division grow and expand, and that customers should expect the same level of service after the transaction closes.
Veritas Capital Chairman Robert McKeon (pictured) added: ‘The acquisition will provide us with the opportunity to add a truly outstanding business and world-class management team to our portfolio and we look forward to building upon our experience in the healthcare analytics market. We also look forward to welcoming the business and its talented employees, including its management team led by Mike Boswood, into the Veritas family.’
The parties expect the sale to close in a few months.
Web sites: www.veritascapital.com