Reuters Sells Factiva Stake

Dow Jones will own 100% of the business.
Publish date:

Dow Jones


said it will buy



50% stake in their Factiva joint venture, giving it total ownership of the business.

The deal should close by the end of the year, Dow Jones said Wednesday. Dow Jones will pay $160 million for the Factiva interest when the purchase closes and will make annual payments over the next 3 1/2 years of about $25 million.

Factiva is expected to generate revenue of around $290 million this year. Dow Jones said integration costs will probably lower this year's earnings by about 3 cents a share, but in 2007, the transaction should increase profits by roughly 3 cents to 5 cents a share after 2 cents of added integration expenses.