"Thomson Reuters will benefit from the value created by more diversified revenue streams, a larger capital base and synergies resulting from the acquisition. Our leadership position and global footprint will give us opportunities to grow faster than either Thomson or Reuters could have on its own,", added Glocer, who was previously Reuters' CEO.
Thomson Reuters today also unveiled its new branding and a global advertising campaign and said that it might repurchase up to $500 million worth of its shares over the course of the year.On May 15, 2007, Thomson agreed to acquire Reuters for 352.5 pence in cash and 0.16 Thomson Reuters plc ordinary shares for each Reuters ordinary share.
On February 19 this year, Thomson and Reuters received regulatory approvals from the European Commission, US Department of Justice and Canadian Competition Bureau. Shareholders of both companies approved the transaction on March 26, leading to subsequent court approvals in Ontario and the UK.Both the companies separately had a significant presence in India and Thomson has said that with its acquisition of Reuters it would further expand its footprint in the country. Days after sealing the Reuters deal, Thomson had announced in May last year the launch of a new India centre in Chennai. It has facilities in Bangalore and Hyderabad as well.
In its last annual report, Reuters had said that its revenue grew strongly in all geographic regions in 2007, but Asia was the fastest growing region fuelled by double-digit growth in China, India and other emerging markets. According to the report, Reuters acquired a 26 per cent stake in Times Global Broadcasting Co Ltd for 11 million pounds relating to the launch of a new news channel, Times Now, in association with the Times of India, in October 2006. Reuters invested 5 million pound in the associate during 2007. In November 2007 the Times Now investment was classified as a non-current asset held for sale.
Terming Reuters as a perfect fit, Thomson Chairman David Thomson and CEO Richard J Harrington had said in the company's annual report, "This will give us more traction in geographic markets that will become increasingly important for our business. Today, the US and Europe are by far Thomson's largest markets. However, the demand for information services is expected to increase significantly in Asia especially in China, India and Japan over the coming years."