|Weekly News Digest
June 9, 2011 — In addition to this week's NewsBreaks article and the monthly NewsLink Spotlight, Information Today, Inc. (ITI) offers Weekly News Digests that feature recent product news and company announcements. Watch for additional coverage to appear in the next print issue of Information Today. For other up-to-the-minute news, check out ITIís Twitter account: @ITINewsBreaks.
CLICK HERE to view more Weekly News Digest items.
Thomson Reuters to Sell Its Healthcare Business
Thomson Reuters announced its intention to divest its Healthcare business, which has been part of the company's Healthcare & Science segment. The Healthcare business provides data, analytics, and performance benchmarking solutions and services to companies, government agencies, and healthcare professionals.
With assets and solutions such as MarketScan, Advantage Suite, Micromedex, CareDiscovery, and ActionOI, coupled with expert services and analysis, the Healthcare business provides its customers with solutions to identify savings, improve outcomes, fight fraud and abuse, and more efficiently manage their healthcare operations.
“Our Healthcare business is recognized for its innovative solutions and its expertise which are critically important to its customers,” said Thomas H. Glocer, chief executive officer of Thomson Reuters. “We are grateful for the hard work and dedication of our talented employees who have built the Healthcare business into a successful and profitable unit.”
“Thomson Reuters has strong positions in our chosen markets and we believe we will achieve better all-in returns for our shareholders by divesting the Healthcare business and re-deploying the proceeds in our core franchises. We have leading positions in global markets, including legal, tax and accounting, science and intellectual property, financial services and media, where we see significant opportunities for future growth and profitability. While a growing and profitable unit, our Healthcare business lacks the integration with and global scale of our other units, and our disciplined approach to capital allocation convinced us that the expected proceeds from a sale into a consolidating market could be better applied elsewhere in our portfolio,” said Glocer.
The Healthcare business in 2010 had revenues of approximately $450 million and an operating margin comparable to the company's consolidated margin of 19.3%. Following adjustment for this divestiture by removing Healthcare's results from ngoing businesses, no material impact is expected to the company's previously announced 2011 outlook. The company expects the divestiture to close before the end of the year.
This divestiture will result in a realignment of the company's existing Intellectual Property and Science businesses into a single operating unit of the Professional division. Both are global and support scientific research, discovery, and innovation.
Source: Thomson Reuters
Send correspondence concerning the Weekly News Digest to NewsBreaks Editor