Vista Equity Buys Thomson Reuters’ Risk Management Software Biz

Vista Equity Partners is acquiring Thomson Reuters‘ trade and risk management software business, which includes flagship product Kondor. Vista beat bids from other private equity firms including Cinven, Bridgepoint and Montagu Private Equity. The value of the sale was not disclosed, but the loan supporting the leveraged buyout is expected to be around $200 million, Reuters wrote. Thomson Reuters is the publisher of this blog.

(Reuters) – Thomson Reuters (TRI.TO) said it has agreed to sell its trade and risk management software business, which includes flagship product Kondor, to private equity firm Vista Equity Partners.

The value of the sale was not disclosed.

The loan to support the leveraged buyout is expected to be around $200 million (129 million pounds), sources familiar with the deal told Thomson Reuters LPC.

The debt financing will be provided by a group including GE Capital (GE.N), ING (ING.AS), Lloyds (LLOY.L) and Royal Bank of Canada (RY.TO), sources familiar with the deal said.

Vista beat bids from other private equity firms including Cinven, Bridgepoint and Montagu Private Equity.

Thomson Reuters, which provides news and information services, said it will now begin a consultation process with works councils, unions and employee representatives and a final sale and purchase agreement to the proposed transaction is expected to close by January 31, 2012.

Barclays Capital acted as sole financial advisor to Thomson Reuters.

The trade and risk management business operates under the Thomson Reuters enterprise solutions business.

Kondor provides trade and risk software as well as liquidity risk systems for treasury and cash management operations. Its main competitors include Misys (MSY.L), SunGard BAINSD.UL and French software solutions company Murex.

In April, Thomson Reuters said it expects to raise about $1 billion from the sale of its enterprise risk management and investment accounting software businesses, along with previously announced sales of a legal education product and Scandinavian legal and tax and accounting units.

In June Thomson Reuters said it also planned to sell a unit of its healthcare business. In 2010 the unit had revenues of about $450 million.

(Reporting by Isabell Witt and Claire Ruckin; Additional reporting Jennifer Saba; Editing by Chris Wickham and David Cowell)

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