Thomson Reuters plans to sell off Ann Arbor-based health care division
Information services giant Thomson Reuters plans to sell off its Ann Arbor-based health care division, the company said late Monday.
Thomson Reuters in 2008 replaced the old "777" sign on its corporate facility on Eisenhower Parkway with its logo.
File photo | AnnArbor.com
It was not immediately clear how a sale of the health care division would affect the Ann Arbor operation. A buyer could decide to do any number of things, including expand, reduce, consolidate or move the operation.
"Certainly the employees are very much a part of the success, or the reason of the success, of the health care business, and it is well positioned and a strong business," Thomson Reuters spokesman Calvin Mitchell told AnnArbor.com. "But it’s just too early to speculate on that impact."
As part of the proposed sale, Thomson Reuters said it would consolidate the science part of the health care division into its professional division.
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.
The decision comes as the company plans to add a legal services unit to its Ann Arbor operation, according to online job postings circulating in the legal community. Executives recently declined to discuss that operation, which would reportedly be part of the firm's Pangea3 unit, which Thomson Reuters acquired in 2010.
The health care division offers a variety of services, including analyzing health care costs and trends and consulting to help health care systems and insurers cut costs.
“Our healthcare business is recognized for its innovative solutions and its expertise which are critically important to its customers,” Thomson Reuters CEO Thomas H. Glocer said in a statement. “We are grateful for the hard work and dedication of our talented employees who have built the healthcare business into a successful and profitable unit."
Glocer called the $450 million division "a growing and profitable unit" but said it "lacks the integration with and global scale of our other units" and that a sale would provide cash that could be reinvested in other parts of Thomson Reuters' expansive business.
The company said that Morgan Stanley and Allen & Company would serve as financial advisers on the proposed sale.
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
st.julian
Wed, Jun 8, 2011 : 6:38 p.m.
Ann Arbor is a massive businees accelorator. Busines form here, are nurtured here,but are infrequently able to mature and live their nautral lives here. Once sold the buyer makes solicitous comments about keeping the business here, then downsizes it or moves it out of the area. Perhaps the Governor and MEDOC should focus on keeping businesses rooted here once the gardening takes.
Ariel
Wed, Jun 8, 2011 : 12:31 p.m.
Thomson Reuters are also in two buildings in the Avis Farm business park down State Street past the Ann Arbor Airport. I feel back for the employees as so much is going to be uncertain until closer to the end of the year when they officially sell. Are their jobs safe? Do they have to relocate far? Should they start looking for jobs now? I hope they stay in the 777 building, as I know at least one of their departments take up the top floor.
Barb
Wed, Jun 8, 2011 : 4:11 p.m.
No, the Dexter office is only Tax & Accounting. Not Scientific.
flexorz
Wed, Jun 8, 2011 : 2:22 p.m.
Thomson Reuters Scientific also has a presence in Dexter, which is also unaffected. The Healthcare business is very profitable and has met or exceeded expectations, even in the past few years, so I don't see any reason for the buyer to change a whole lot once the sale is made.
fjord
Wed, Jun 8, 2011 : 1:33 p.m.
Most (if not all) of the TR presence at Avis Farms is Tax & Accounting. I don't think Health Care has any people at those sites.
JC
Wed, Jun 8, 2011 : 2:34 a.m.
GE is the rumored buyer but I am not sure if they are waiting on the sale of their locomotive division to finalize the deal. I think the jobs are safe in Ann Arbor.
Stephen Lange Ranzini
Tue, Jun 7, 2011 : 10:20 p.m.
This is an excellent business with great growth prospects because of their leading national role in health information exchange and accountable care organization data analysis. These will be the two fastest growing businesses in the healthcare industry for the next 10 years and the healthcare industry is the largest industry in the U.S.
flexorz
Tue, Jun 7, 2011 : 11:40 p.m.
The Healthcare division of Thomson Reuters already has two other major locations, one outside Denver, the other outside Chicago - so operating out of different locations is the norm. Hopefully, a buyer would see that how well this has worked in the past and would not have a problem keeping the already existing locations, even if they aren't in the same region as the buyer.
Bob Martel
Tue, Jun 7, 2011 : 11:02 p.m.
I just hope they stick around Ann Arbor.
blahblahblah
Tue, Jun 7, 2011 : 9:16 p.m.
Anyone know about their leasing terms in the 777 building? How many floors? How many years left on their lease?
toofmullets
Wed, Jun 8, 2011 : 12:30 a.m.
They're on floors 3,4,5,6,8,10 and half of 9.
Bob Martel
Tue, Jun 7, 2011 : 8:50 p.m.
I've got a bad feeling about this.