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Information technology services industry

Thomson Corporation Seeks European Expansion through Acquisitions

Strategic Insights

— 1 min read

Thomson Corporation, a Canadian publishing group, is aiming to increase its European presence by acquiring legal publishers, competing with Reed Elsevier and Reuters in the financial information market. The company's current revenue breakdown shows that only 18% comes from outside North America, with a goal to raise this to 25-35% in each of its four main business lines. This expansion would involve entering new markets in Germany, France, and Italy, where the company currently has a smaller presence.

Key Takeaways:

  • Thomson Corporation aims to increase its non-North American revenue to 25-35% in each of its four main business lines, with a focus on acquisitions in the legal and regulatory framework.
  • The company's legal division contributes 16% of revenues outside the US, and it wants to raise this level to 25%.
  • The financial arm of Thomson, which competes with Reuters and Bloomberg, has a non-US revenue market share of around 8%, and the company wants to lift this to 35% by offering tailored products to market niches.
  • Expanding outside the US would mean Thomson competing directly with European groups in the financial data, legal, and scientific information markets.
  • The company's owner, David Thomson, holds 68% of the business, and his son, Richard Harrington, is the CEO.
  • Thomson has launched successful products such as Thomson Pharma, a database and information service for drugs industry researchers, and Thomson One, its financial information product.
  • Despite efforts to expand in the UK, Thomson has faced challenges, including the loss of a contract to manage the theory element of the driving test to Pearson.

Statistics:

  • Thomson Corporation's revenue: $8 billion (Pounds 4.4 billion)
  • Percentage of revenue generated from outside North America: 18%
  • Goal for non-North American revenue in each line of business: 25-35%
  • Contribution of Thomson's legal division to non-US revenue: 16%
  • Current non-US revenue market share of Thomson's financial arm: 8%
  • Market value of Thomson Corporation: $22 billion

Sources:

  • The Times, 2005

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