Thompson Reuters sells intellectual property unit for $3.6bn

Thomson Reuters has agreed to offload its Intellectual Property & Science business for $3.6bn cash to buyout pair Onex and Baring Private Equity Asia.

The deal is expected to close in the next few months with Onex and Baring Asia funding the purchase with debt and a $1.6bn equity commitment.

IP & Science is a provider of intellectual property, scientific information and other tools to subscribers that include governments, academia, publishers and corporations that are looking to discover, protect and commercialize new ideas and brands.

Its portfolio includes Web of Science, Thomson CompuMark, Thomson Innovation, MarkMonitor, Thomson Reuters Cortellis and Thomson IP Manager.

Toronto- and NYSE-listed Reuters expects to use around $1bn of the proceeds to repurchase shares as part of its ongoing $1.5bn buyback programme.

Chief executive Jim Smith said that with the completion of the sale, Thomson Reuters "will be even more focused on operating at the intersection of global commerce and regulation”.