Equity Firm Buys Yankee Group
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Months after announcing plans to divest The Yankee Group, Reuters followed through on its word Thursday, agreeing to sell the telecom research firm to Monitor Clipper Partners and private investors for an undisclosed sum.
According to Reuters spokesperson Kyle Arteaga, Reuters opted to sell the popular research firm to focus on its core business, which is financial and equity services content. For example, he noted that 88 percent of Reuters' revenue comes from financial services with the remaining 12 percent derived from its media business.
The decision makes sense because the research unit had not yet been fully folded into Reuters operations, he said.
The acquisition was part of a turnaround plan by Reuters, called "Fast Forward," to stanch its red ink amid lower revenues and beef up its online pipeline of market data and information products.
Arteaga said Reuters is also looking to sell financial research business Tower Group to continue the divestiture of non-essential businesses.
Arteaga said Yankee Group will be in good hands as the group of private investors includes former Lycos President, COO and CFO Ted Philip, who will stay on the board of directors for this investment.
Yankee Group President and CEO Brian Adamik said he was pleased with the acquisition.
"Throughout this process we focused on achieving the best outcome for our customers and employees," Adamik said in a statement. "With access to the resources and relationships made available to us by these investors the Yankee Group has the ability to expand its world class customer service and product portfolio."
Created in 1970, Yankee Group is considered a seminal research technology advisory firm, along with such successful research businesses such as Gartner and IDC. With headquarters in Boston and offices throughout North America and Europe, it advises on communications and networking, providing research and consulting expertise.
Monitor Clipper Partners (MCP), a private equity firm formed in 1997 by principals of The Clipper Group and Monitor Group, MCP sponsors management buyouts, recapitalizations and equity investments.