Skip to content

Billions: Thomson Reuters sells Philly-based research unit to private equity

$3.55 billion deal for 3400-person, 40-nation Intellectual Property & Science group

(Revised and corrected 7/12)  Thomson Reuters, the Canada-based data-publishing-news conglomerate, says it has agreed to sell its 3,400-person, Philadelphia-based Intellectual Property & Science business, and its trademark, patent, copyright and brand information businesses at 75 offices in 40 countries, for $3.55 billion "in cash," to private-equity firms, according to the seller.  

No confirmation yet on a future role for Vin Caraher, head of IP&S, or other Philadelphia-based managers. IP&S, a group of businesses centered on the old University City-based academic-research aggregator the Institute for Scientific Information, is now based in the former SmithKline pill factory at 15th and Spring Garden Streets.

Buyers: 1) Onex Partners LP, a Toronto firm with $6 billion invested worldwide, which says it will pay $1.2 billion as its equity investment; and 2) Baring Private Equity Asia, which has $10 billion invested in management buyouts and other deals in China, India and elsewhere East. Baring Asia will pay $400 million.
Neither buyer would immediately make clear why they are accounting for less than half the price Thomson Reuters says it will receive in cash. $1 billion of the price will go to a previously-announced stock-repurchase program, Thomson Reuters spokesman David Crundwell told me.
IP&S says it offers "decision support tools and services" for companies, scholars, lawyers and regulators "to discover protect and commercialize comment" through products called Web of Science, CompuMark and Cortellis, among others. 
In a statement, Onex managing director Kosty Gillis called IP&S "a diversified portfolio of high-quality, well-positioned businesses providing proprietary, curated content through products and services that are entrenched in their customers’ day-to-day activities." He pledged Onex and Baring Asia will "enhance IP&S operations and support its growth in the years to come.” 
Baring Asia boss and founder Jean Eric Salata said his partners "look forward to partnering with IP&S management and Onex to support the development of the company globally, particularly in Asia where we see a differentiated growth opportunity."
He added that IP&S "is already an established leader in China" and the business will prosper in "more knowledge-driven economies" with "continued emphasis on research and development."
Onex is one of the private-equity firms that considered buying the Inquirer from the former Knight-Ridder Inc. way back in 2006.