UPDATE: Thomson Reuters To Sell Health-Care Unit For $1.25 Billion

Thomson Reuters Corp. (TRI, TRI.T) will sell its health-care business to private-equity firm Veritas Capital for $1.25 billion in an all-cash deal that will help the data and analytics provider focus more on its struggling core financial-markets business.

The sale to Veritas came after Thomson Reuters said it was re-launching a sales process for the unit earlier this year. In 2011, an initial auction process drew insufficient interest in volatile markets.

"With the completion of the divestiture, Thomson Reuters will be even more focused on our core global businesses," Chief Executive James C. Smith said.

Thomson Reuters unveiled a restructuring of its markets business last year amid disappointing early sales of a new markets desktop product called Eikon. It also underwent a major reshuffling of its top leadership ranks, including the departures of several high-level executives. Analysts have voiced concerns about the company's dependence on financial-markets clients at a time when banks are cutting costs because of new regulation and uncertain markets.

Thomson Reuters shares fell 1.9% to $28.32 amid a broader market selloff Monday; the shares are down around 31% over the past year.

The health-care business provides data, analytics and other services on the health-care industry to companies, government agencies and health-care professionals.

The sale, subject to the approval of regulators, is expected to close in the next few months.

As part of broader efforts to refocus its business, Thomson Reuters in February disclosed plans to sell three smaller units, which together accounted for about $155 million in revenue for 2011. The company has also said it was open to small, strategic acquisitions.

Dow Jones Newswires and The Wall Street Journal compete with Thomson Reuters' news service.

-By William Launder, Dow Jones Newswires; 212-416-3412; [e-mail]

--Mia Lamar contributed to this article.