Thomson Reuters announced it is suspending plans to sell its healthcare business because of poor market conditions. The publicly traded news and information company said in a news release it would again seek to sell the business once market conditions improve.
Thomson Reuters suspends healthcare business divestiture
"Since announcing the planned divestiture in June, global economic conditions have become more challenging and the company believes they are not conducive to concluding a transaction that reflects the fair value of the healthcare business at this time," the release stated.
The company said this summer that it would divest its healthcare business, which markets data, analytics and benchmarking services to healthcare organizations and professionals. The business line reported revenue of $450 million, according to Thomson Reuters. Its operating margin for the year was comparable to the company's 19.3% consolidated margin, the company said.
"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," Thomson Reuters CEO Thomas Glocer said in a news release when sale plans were announced.
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