June 6, 2013
Thomson Reuters Acquires OTC Derivatives Pricing Analytics Provider, Pricing Partners
PARIS - Thomson Reuters, the world’s leading source of intelligent information for businesses and professionals, today announced that it has acquired Pricing Partners SAS, an international software developer and provider of OTC (over-the-counter) derivative pricing analytics and services for financial firms. Pricing Partners will complement Thomson Reuters Pricing Service (TRPS), a global solution that provides evaluated prices to support portfolio, fund and single security valuations.
The evaluated pricing space continues to grow at double digits based on increased regulation and demand for independent, transparent pricing.
The acquisition of Pricing Partners builds on Thomson Reuters leading position as a provider of independent evaluated pricing to the global financial community. Pricing Partners enhances TRPS pricing abilities for structured notes, interest-rate, equity, credit, commodities and FX derivatives, as well as hybrid products, adding such services as derivative products valuation, pricing tools and risk analytics to TRPS. Pricing Partners’ deep localized capabilities in France and across Europe builds on Thomson Reuters leading global position in independent evaluated pricing, and their broad set of capabilities in derivatives pricing will further support the pricing of illiquid and hard-to-price assets globally.
“In today’s economic environment, regulatory requirements and continued economic recovery pressures are driving demand for independent and transparent evaluated pricing services that are specialized to offer local market expertise,” said Debra Walton, managing director and head of Enterprise Content at Thomson Reuters. “The acquisition of Pricing Partners strongly positions Thomson Reuters to meet the changing needs of our European and global client base.”
“Pricing Partners has built a strong brand with an impressive offering and client base in Europe with a growing presence in Asia,” said Neil Masterson, managing director and head of Investors at Thomson Reuters. “This acquisition builds on our commitment to providing our clients with the independent, neutral pricing services they need and represents another step forward in our vision to connect and power the global financial community.”
Thomson Reuters and Pricing Partners already have an established and successful working relationship under which Thomson Reuters has used Pricing Partners Price-it®, a proprietary financial library covering all major asset classes: interest rates, equity, inflation, credit, foreign exchange, commodities, life insurance and hybrid products, to provide pricing services through its proprietary delivery platform, Thomson Reuters DataScope, reaching over 2300 clients worldwide on a daily basis. "Pricing Partners is delighted to have found a strong industry leader in Thomson Reuters who will use our critical talent and expertise to grow and serve our customer base," said Eric Benhamou, CEO of Pricing Partners. "Thomson Reuters is a proven partner and shares our vision of the growth opportunities that exist in the evaluated pricing space."
Thomson Reuters Pricing Service (TRPS) provides end-of-day evaluated prices on over two million taxable and non-taxable issues, including government, corporate and convertible bonds, and RMBS, ABS and derivative securities to support portfolio, fund and single security valuations. Pricing Partners will become part of the TRPS service of Enterprise Content, a business unit of Investors.
Terms of the agreement were not disclosed.
About Pricing Partners
Pricing Partners SAS is an international software developer of OTC derivative pricing analytics and a service provider of independent valuation for all derivatives ranging from vanilla to the most complex exotic and hybrid structures. Pricing Partners is actively involved in the financial industry market, specifically in front office trading, quantitative research, risk control, risk management, structuring, , and front office IT. Founded in 2005, Pricing Partners develops its proprietary financial library, Price-it®, in stand-alone or SaaS mode, covering all major asset classes: interest rates, equity, inflation, credit, foreign exchange, commodities, life insurance and hybrid products. With its increasing portfolio of clients and partners as well as its rapid growth, Pricing Partners has turned into a well respected and trusted company known for its innovative developments and clients' confidence. To further increase the company's business, Pricing Partners strives to become a leading technology vendor in the global OTC derivatives market. With headquarters in Paris and offices in London, Singapore and Hong Kong, Pricing Partners anticipates future global growth with associates in all continents.
Thomson Reuters is the world's leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial and risk, legal, tax and accounting, intellectual property and science and media markets, powered by the world's most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs approximately 60,000 people and operates in over 100 countries. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges. For more information, go to thomsonreuters.com.