Thomson Reuters Financial & Risk business is to operate under a new name, Refinitiv, ending a 160-year association with the Reuters brand following the closure of a majority stake sale to Blackstone.
Competition watchdogs at the European Commission removed the final hurdles to the transaction last week, paving the way for Blackstone to take on a 55% stake in the business.
The deal values the F&R business at approximately $20 billion. Thomson Reuters will receive $17 billion in gross proceeds at closing funded by $14 billion of debt and preferred equity to be incurred by the partnership and a $3 billion cash equity contribution by Blackstone.
The financial and risk unit, which provides market data, analytics and trading terminals to banks worldwide, generates more than half of Thomson Reuters annual turnover, reporting $6.1 billion in revenues in 2016.
The business has been in the doldrums since the 2008 crash but is now viewed as an undervalued asset in a market characterised by robust growth and a slew of new data-hungry regulatory measures.
Closing of the transaction is expected to occur in the second half of 2018 and until then the business will continue to be known as Thomson Reuters Financial & Risk.
The firm says the new name, Refinitiv, aims to blend "definitive action in financial markets and a bold focus on the future with a 160-year legacy of excellence as a pioneer in financial technology".
Future CEO of Refinitiv, David Craig, says: “Thomson Reuters Financial & Risk has a rich history and reputation and it was important to us that our new name celebrated both our pride in our legacy and also the defining role we will continue to play as an integral and innovative part of the financial markets community.”