Reed Elsevier, the Anglo Dutch publishing and information group, said today that it will pay $4.1 billion (£2.1 billion) cash for ChoicePoint, the US risk information group, and has put 15,000 trade magazines up for sale for an undisclosed sum.

Reed said combining its LexisNexis Risk operation with ChoicePoint would create a risk management business with $1.5 billion in revenues.

Sir Crispin Davis, Reed Elsevier's chief executive, said: “The acquisition of ChoicePoint represents a major further step in the building of our risk management business and in the development of Reed Elsevier's online workflow solutions strategy.”

The $4.1 billion deal is made up of an equity value of $3.5 billion and the assumption of $0.6 billion of net debt.

In morning trading Reed's shares rose 5.7 per cent, or 33.5p, at 617.5p.

Commenting on the sale of Reed Business Information, which publishes over 15,000 publications including New Scientist magazine, said that the unit's advertising revenue model with its inherent cyclicality, fit less well with the subscription-based information and workflow solutions focus of Reed Elsevier's strategy.

Last year the group sold its Harcourt Education business for £2.5 billion.

Sir Crispin said that the group had made “good progress” over the last year and that investment in its online growth and workflow solutions strategy was paying off, adding that the decline of the US dollar took “some shine” off the company’s earnings performance.

Pre-tax profits for the year to December 31 rose 20 per cent to £812 million. Revenues were up 2 per cent £4.6 billion.

Looking ahead he said that the outlook for Reed Elsevier was “very positive” and that the firm’s restructuring was strengthening the company to accelerate growth.

Reed is targeting cost savings of £245 million between this year and 2011 with annual savings of £100 million by 2011.

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