Thomson Reuters will sell its health care business line to an affiliate of Veritas Capital for $1.25 billion in cash.
The business includes provider clinical decision support in Micromedex, clinical benchmarking and regulatory reporting, data analytics including the MarketScan research databases, payer fraud and abuse management and cost control applications, and the Medical Episode Grouper methodology to enable government agencies to evaluate provider performance.
Thomson Reuters’ Healthcare unit had revenue of approximately $450 million in 2010 and an operating margin of around 19 percent, according to the company. The company did not disclose revenue and operating profits for the unit in 2011, placing it in an “Other Business” category with other units slated for divestiture or closure. The Healthcare unit had about 2,100 employees at the end of 2011.
The New York-based vendor announced in June 2011 it would divest its health operations and use the proceeds to invest in its core markets including legal, tax and accounting, science and intellectual property, financial services, and media. Citing economic conditions, Thomson Reuters in December 2011 suspended efforts to sell the unit. The company said global economic conditions had become more challenging and it did not envision getting an offer of fair value for the health business.
Thomson Reuters and Veritas Capital expect the sale to close in a few months.
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