Onex Corporation and Baring Private Equity Asia have agreed to acquire the intellectual property & science business (IP&S) of Thomson Reuters for $3.6 billion. It is estimated that IP&S has annual revenues of approximately $1 billion with a 32% EBITDA margin.
The transaction is expected to be funded with an equity investment of $1.6 billion for 100% ownership of IP&S. Onex’ and its co-investors will provide $1.2 billion of the equity with Baring providing $400 million. The transaction is expected to close later this year.
IP&S owns a collection of subscription-based businesses that provide access to scientific literature, patent, trademark, and pharmaceutical content. Customers of IP&S include academic institutions, corporations, governments and law firms. The IP&S portfolio includes Web of Science, Thomson CompuMark, Thomson Innovation, MarkMonitor, Cortellis and Thomson IP Manager. IP&S is headquartered in Philadelphia, and employs approximately 4,100 people in 75 offices in 40 countries (www.ipscience.thomsonreuters.com).
“IP&S is 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,” said Kosty Gilis, a Managing Director with Onex. “We are delighted to have the opportunity to acquire the company and partner with management and Baring Asia to enhance IP&S’ operations and support its growth in the years to come.”
Onex Corporation makes private equity investments through the Onex Partners and the ONCAP families of funds. Onex has more than $23 billion of assets under management and is based in Toronto with additional offices in New York and London (www.onex.com).
“We 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,” said Jean Eric Salata, Founder and Chief Executive of Baring Asia. “Already an established leader in China and across the region, we believe the outlook for the business is underpinned by an increasing shift towards more knowledge driven economies and a continued emphasis on research and development.”
Baring Private Equity Asia advises funds that manage more than $10 billion in committed capital. The firm runs a pan-Asian investment program, specializing in mid-cap buyouts and providing growth capital to companies for expansion or acquisitions. Baring Asia currently has over 35 portfolio companies across Asia with 150,000 employees and revenues of over $31 billion. The firm has been investing in Asia since its formation in 1997 and has approximately 125 employees located in Hong Kong, Shanghai, Beijing, Mumbai, Singapore, Jakarta, and Tokyo (www.bpeasia.com).
Latham & Watkins (www.lw.com) is serving as legal advisor to Onex and Baring Asia on the transaction.
© 2016 Private Equity Professional • 7-12-16