Thomson Reuters has announced that it intends to sell its healthcare business, which currently accounts for about half of its Healthcare & Science operation. Citing reinvestment opportunities as the main driving force behind the decision, the divestment also provides a warning for STM companies wanting to invest in healthcare workflow opportunities.
Thomson Reuters was one of the first STM companies to invest significantly in clinical decision support, analytics and performance benchmarking applications for healthcare. It built up a successful $450 million portfolio containing key assets supporting payers, clinicians and providers.
Although the unit had achieved a 19% margin, in line with the average for the company as a whole, the growth rates within the healthcare business were disappointing despite the levels of investment being made and encouraged by the US government in the North American healthcare market. As a consequence, Thomson Reuters now feels that the monies from a sale can be better used to strengthen its Legal, Tax & Accounting and IP & Science businesses.
Obviously such move will turn up the heat on LexisNexis. Source: Outsell Inc.