With the sale of a 51% majority stake in its Global Print business for about $500 million in gross revenues, Thomson Reuters Corporation has formally entered into a definitive agreement to form a joint venture with private equity firm KKR, according to a report by Reuters.
Thomson Reuters will retain editorial control over its content portfolio, intellectual property rights, and a 49% share in the business as a result of the acquisition, which was announced on Tuesday.
The global print company provides book publishers with commercial printing services and provides legal and tax information to customers worldwide in print and digital book formats.
Although it generated $490 million in revenue last year—nearly a quarter of the total—the unit's sales are predicted to decrease annually as consumers switch to online goods.
Thomson Reuters, a Toronto-based company, could concentrate more on its "Big 3" business segments—legal professionals, corporates and tax, and audit and accounting—by selling the stock.
"We believe this transaction with KKR provides our Global Print business with the focused investment, operational capabilities, and independence to thrive as a standalone business," said Steve Hasker, CEO of Thomson Reuters.
"At the same time, it sharpens Thomson Reuters focus on providing innovative fiduciary-grade AI solutions for the legal, tax, audit and compliance industries."
One of the largest private equity firms in the world, KKR, has been acquiring publishing and media companies that larger owners are selling in order to concentrate on faster-growing digital industries.
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According to the agreement, Thomson Reuters would guarantee KKR a minimum return on its investment in the joint venture under specific conditions by providing some financial support.
The purchase is anticipated to be completed in the fourth quarter of 2026 by Thomson Reuters, the parent company of Reuters News.
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