Thomson Reuters is better than expected in the third quarter to plan a big takeo
Jim Smith, chief executive of Thomson Reuters (TRI.TO) (TRI.N), said on Tuesday that Thomson Reuters was planning a "major" acquisition to strengthen its legal and tax undertakings after it had sold a majority stake in the financial terminal business.
Smith's announcement came after Thomson Reuters reported better-than-expected third-quarter results, driving the company's share price to an 18-year high.
Smith said in an interview with Reuters that the news and information services provider had allocated $2 billion for trading, after the company received $17 billion from the sale of 55% of its financial and risk unit to Blackstone.
"We are interested in larger and more important transactions," Smith said. "I do not expect a series of small-scale acquisitions. We'd rather spend $2 billion on a few deals than on two or three.
After publishing quarterly results, Smith told analyst conference calls that Thomson Reuters would also be willing to spend more than $2 billion if it found the right target.
Thomson Reuters had expected to use $1 billion to $3 billion of the exchange's proceeds to launch acquisitions in the legal and accounting fields. Last month, the company agreed to buy Integration Point, a trading management software company, but did not disclose the amount of the transaction.
The financial and risk department is currently an independent company called Refinitiv.
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