Thomson Reuters plans to sell its healthcare business before the end of the year, according to a news release from the company.
"Thomson Reuters has strong positions in our chosen markets and we believe we will achieve better all-in returns for our shareholders by divesting the healthcare business and redeploying the proceeds in our core franchises," CEO Thomas Glocer said in the release, describing those franchises as legal, tax and accounting, science and intellectual property, financial services and media.
The company reported $450 million in revenue for the business in 2010 and said in the release that the division's operating margin was comparable to the company's consolidated margin of 19.3%.
"While a growing and profitable unit, our healthcare business lacks the integration with and global scale of our other units, and our disciplined approach to capital allocation convinced us that the expected proceeds from a sale into a consolidating market could be better applied elsewhere in our portfolio," Glocer said.
Thomson Reuters' healthcare division sells data, analytics and benchmarking products to clients including healthcare providers and government agencies. Its offerings are aimed at improving performance and helping companies achieve compliance with fraud and abuse regulations.
The company produces the 100 Top Hospitals lists and developed the third annual Top 10 Health Systems study that appeared exclusively in the May 30 issue of Modern Healthcare.