Nasdaq OMX to buy Thomson Reuters unit for $390M
NEW YORK (AP) — The operater of the Nasdaq Stock Market said Wednesday that it is buying the corporate services division of Thomson Reuters Corp. for $390 million in cash, bolstering its public relations, investor relations and webcasting business.
The deal, expected to close in the first half of 2013, will more than triple the revenue The Nasdaq OMX Group Inc. makes annually from such corporate solutions services to about $331 million from $97 million.
The acquisition is expected to boost earnings within 12 months of being finalized excluding the transaction costs. Nasdaq OMX expects to reap $35 million in annual cost savings over the next three years.
It is funding the purchase from cash on hand and by drawing down some of a revolving credit line.
Nasdaq OMX shares rose 97 cents, or 4.2 percent, to $24.40 in midday trading following the announcement. Thomson Reuters shares rose 52 cents or 1.8 percent, to $29.18.