GMT Communications Partners acquires Thomson Reuters’ Legal and Tax & Accounting Businesses

GMT Communications Partners, the European TMT-¬focused private equity group, has agreed to acquire the legal and tax & accounting businesses of Thomson Reuters in Denmark and Sweden. The acquisition is expected to close later this week. Financial terms were however not disclosed.  

The Scandinavian legal and tax & accounting business provides legislation, case law and regulatory information, and its products are renowned for their authority, industry expertise and innovative technology. These services enable decision-makers to make better decisions faster.  

Stefan Franssen, Partner at GMT, who will join the Board of the Company following the transaction, said Thomson Reuters Business has a very strong leadership position in its largest segment and has an attractive business model with recurring, subscription-based revenues. GMT looks forward to helping this organization realize its growth potential.  

Neil Story, Managing Director of the business, said GMT’s clear expertise in the TMT space, particularly in helping content businesses grow through online-based growth strategies, will make them a great partner. Story said GMT anticipates that with their active support in helping the business expand organically and through selective acquisitions, the business has the potential to grow rapidly.

The business employs approximately 140 people across offices in Copenhagen, Stockholm and Aarhus. Key brands are KARNOV, PACTA and UfR, amongst others.  

The business is well positioned in attractive niche markets of the professional information industry, occupying a strong market-leading position in Danish legal, tax and accounting professional information. It is the largest provider of online legal professional information in Sweden. Customers include law firms, corporates, government lawyers and law students, as well as accounting firms and corporate accountants.  

The business has a strong subscription-based business model with high levels of recurring revenues and strong cash generation.  The deal is GMT’s 29th investment in Europe since its foundation in 1993, and cements the firm’s position as the leading mid-market TMT sector specialist fund in Europe.  

Upon closing, GMT plans to support a growth strategy based on both organic and acquisitive expansion in the Nordic region. GMT believes that the online-based business model, which is growing strongly and currently accounts for 60% of total revenues, also provides high operational leverage and scalability.

GMT Communications Partners is a leading private equity firm focusing on investments in the European Communications Industry. With a 17 year record of active investing, the GMT team is Europe’s longest-established private equity firm specializing in the Communications arena.

8th April 2011

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