India IT firm could acquire Thomson Reuters' Ann Arbor-based health care division, according to report
An India-based information technology services company is nearing a deal to acquire the Ann Arbor-based health care division of Thomson Reuters, according to a report by an Indian business journal.
The report — which has been circulated by major U.S. news sources including Bloomberg and Reuters' news division — says that Infosys Ltd. is negotiating a deal to buy the health care operation for $700 million to $750 million.
Business Standard of India, citing anonymous sources, said "an announcement is expected shortly."
Spokespeople for Thomson Reuters and Infosys have declined to confirm the deal discussions, according multiple news media reports.
"We do not comment on rumor or speculation," Thomson Reuters spokesman Calvin Mitchell told AnnArbor.com today in an email.
Infosys has 133,000 employees, $6.35 billion in annual revenue and market capitalization of $28.7 billion.
The health care division of Thomson Reuters provides data analysis, software services and consulting to health care providers and insurers.
Thomson Reuters is the second largest for-profit private sector employer in Washtenaw County. The company's health care business employs between 800 and 900 workers at the former 777 building on Eisenhower Parkway.
The news comes after Thomson Reuters announced in June that it would sell the health care division and split the science part of the operation into its professional division.
Thomson Reuters also said in June that the $450 million health care division was "growing and profitable."
The company's health care and science unit reported 7 percent revenue growth in 2010, compared to 4 percent overall sales growth for the entire corporation.
The company's tax and accounting software business employs between 900 and 1,000 people at its division in Dexter. That division is not for sale.
Infosys has no operations in Washtenaw County, although it does have an office in Troy. One of Infosys' board members is Jeffrey S. Lehman, who served as dean of the University of Michigan Law School from 1997 to 2003 and editor-in-chief of the Michigan Law Review while he was a student. He also serves on the board of Internet2, an Ann Arbor-based not-for-profit networking consortium.
Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.
Comments
perfectly lubricated weather vane
Sat, Sep 17, 2011 : 7:14 p.m.
Would the doomsayers please explain why these same jobs were not moved to Toronto or London long ago?
Gordon
Sat, Sep 17, 2011 : 3:02 p.m.
Seems to be some mis-understanding of the governments role in job creation. They should facilitate not be responsibile for. T-R is an English company that buys & sells companies like people used to buy sell houses for a profit. English companies / investors see a world market American see a mor elimited market. Will joibs disappear & be absorbed in India probably. Should the question be more where were the American companies? Why were they not bidding? This isn't a gvernment data base this is data base derived from info given by other companies. It's the data manipulation that's important. If our Federal & State government paid more attention to the data we might have a different law governing Health care. Elminating the fraud alone would have saved enough money to assist the States budgets. Enforcing regulations is cheaper then impacting everyones health benefits and lowering Doctors compensation with new draconin laws. As you might imagine a number of people with talent have left T-R to work for other USA companies that respect the talent. Makes you understand the value is in the data manipulation & it's not necessary to retain the supoorting departments. Any one want to lease a large office space?
silentk
Mon, Sep 26, 2011 : 5:17 p.m.
Reuters was a British company and Thomson was Canadian.
janeqdoe
Mon, Sep 19, 2011 : 2:21 p.m.
T-R is not an English company. They are headquartered in NYC.
golfer
Sat, Sep 17, 2011 : 12:15 p.m.
hey gov how is your tax plan working? is it keeping jobs in michigan? might have to take more from the middle class.
jbhuron
Sat, Sep 17, 2011 : 1:24 a.m.
Keep this in mind GOPers, pro business-less regulation is exactly what you are getting here. Hundreds of middle class workers will lose their jobs and some at the top will have a fat pay day. This is what you are asking for when you insist that the private sector has all the answers.
5c0++ H4d13y
Sat, Sep 17, 2011 : 9:15 a.m.
Freedom isn't free.
JC
Sat, Sep 17, 2011 : 12:47 a.m.
FYI: GE was unable to sell their locomotive division...
5c0++ H4d13y
Fri, Sep 16, 2011 : 11:20 p.m.
[Insert midwest anger at outsiders here]
Dave
Sat, Sep 17, 2011 : 12:49 a.m.
I don't Know WHAT WE ARE YELLING ABOUT!!! haha Really people this is all a rumor. Sheesh get a grip.
Dawn
Fri, Sep 16, 2011 : 7:23 p.m.
My brother has worked for this part of the company for 15 years. This means he could possibly lose his job, his house and his property. If our government is so bent on improving our economy and improving our country then why would they allow our MEDICAL INFORMATION to be bought by a company from INDIA? We need to keep our PRIVATE INFORMATION here in our own country not outsourced to another! And just think this information would now be handled by those that get paid much less than our AMERICAN workers...so why would they be careful with your medical information?
glimmertwin
Sat, Sep 17, 2011 : 9:33 a.m.
That ship sailed. Tax forms, medical records, you name it has been being outsourced overseas for years.
janeqdoe
Fri, Sep 16, 2011 : 9:23 p.m.
Remember that this report is unconfirmed. It may not even be true.
say it plain
Fri, Sep 16, 2011 : 9:07 p.m.
oh, wow, so that's going to be the next big migration of jobs overseas, all that medical transcription and info management?! Even medical *analysis* might follow, really, why not? India has good science/medicine/health-technology students, a burgeoning middle class whose children need to be launched into the working world, and we'll maybe see lots of medical -info -and -tech jobs go there; the language barrier doesn't really exist... Now, if we had a central medicare-type system for our entire population instead of all those insurance companies we get to keep supporting, we could at least keep these sorts of jobs on our shores, most likely, right? The way things will work now, with the misnomer 'reform' the current administration let happen, this will probably happen more and more, outsourced medical-info services. It will increase insurance and provider and tech-support company profits, send more jobs overseas, and be great for the corporate bottom-line! Good for India, too...but the US not so much.
tdw
Fri, Sep 16, 2011 : 8:37 p.m.
Perhaps because it's a private company and not the governments ?
treetowncartel
Fri, Sep 16, 2011 : 8:17 p.m.
A lot of medical transcription of US patients is already done in India. So, medical information has been going over there for years now.
gofigure
Fri, Sep 16, 2011 : 7:28 p.m.
Well said and I agree.
gofigure
Fri, Sep 16, 2011 : 7:17 p.m.
You think an Overseas Company is going to keep these employees when they can pay their workers minimal wages compared to Thompson Reuters is paying?
silentk
Mon, Sep 26, 2011 : 5:16 p.m.
You obviously know nothing about this business. It's not a manufacturing company where someone overseas can do the work for pennies on the dollar. This is a highly sophisticated company that has U.S clients that won't allow information to be outsourced. Just because there's SPECULATION that a foreign company wants to buy Thomson Reuters doesn't mean it's true and it doesn't mean that jobs will be outsourced.
racerx
Fri, Sep 16, 2011 : 11:24 p.m.
There is no aspect of any job here in the that can't be outsourced. For those who think otherwise haven't been following these developments since the early 90's. Specialized? Right. The moving of information doesn't care if its in Timbuktu, America or China. With the advent of the internet the world is just much more mobile and where you are is not a barrier anymore.
thefoodandwinehedonist
Fri, Sep 16, 2011 : 7:32 p.m.
Maybe some technical jobs, but consulting and client services work can't be outsourced. Also remember that their work is highly specialized to the US healthcare system, which no other country has anything similar. Infosys doesn't have that knowledge. So if they want to enter the market and buy the expertise, they woudn't ditch them.
DonBee
Fri, Sep 16, 2011 : 6:44 p.m.
Bu Bye jobs! Bu Bye local assistance from Thomson Reuters for local charity events!
Barb
Fri, Sep 16, 2011 : 8:36 p.m.
The Tax & Accounting division will still be in the area.
Sparty
Fri, Sep 16, 2011 : 6:44 p.m.
Lets hope that the acquired business stays in Ann Arbor in the 777 Building on Eisenhower Parkway !
gofigure
Fri, Sep 16, 2011 : 5:38 p.m.
more jobs going overseas!
Sparty
Fri, Sep 16, 2011 : 6:45 p.m.
The article doesn't say the jobs are going overseas. Do you know otherwise?
thefoodandwinehedonist
Fri, Sep 16, 2011 : 6:33 p.m.
Revenue yes, jobs no. They can't do what the folks in 777 are doing. Besides Thomson was a Canadian company.