uploads///EBITDA margin

Blackstone Buys a Majority Stake in Financial and Risk Business


Feb. 8 2018, Updated 11:10 a.m. ET


The consortium managed by the Blackstone Group (BX) recently made an announcement regarding a partnership with Thomson Reuters (TRI).

The private player plans to take up a majority stake in TRI’s financial and risk business. GIC and the Canada Pension Plan Investment Board (or CPPIB) are also making investments in TRI’s financial and risk business.

According to the deal, the consortium will have a 55% stake in the Thomson Reuters–acquired business, and Thomson Reuters will have a 45% stake.

Article continues below advertisement

About the business

The above-mentioned deal has been valued at $20 billion. The target business is a platform that contains data analytics and serves financial transactions. The platform also makes available risk management and regulatory solutions, aiding customers in terms of risk as well as compliance.

Blackstone’s management has a favorable outlook on the partnership. According to them, the transaction will be beneficial for BX’s investment partners. According to CPPIB’s management, the transaction will expand CPPIB’s portfolio. The deal will wrap up in 2H18.

Blackstone’s EBITDA (earnings before interest, tax, depreciation, and amortization) margin for the last 12 months is 48.7%. Peers (XLF) Ares Management (ARES), Oaktree Capital Group (OAK), and Ameriprise Financial (AMP) have EBITDA margins of -13.4%, 32.1%, and 23.4%, respectively, on a trailing-12-month basis.


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.