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Financial market data and news provider Reuters has agreed to be bought out by Canadian information company Thomson for $17 billion (£8.7 billion).

In a joint statement the two firms said their boards saw the acquisition as a "natural fit" and believed there was "compelling logic" for the transaction.

The Thomson family holding company, Woodbridge, which controls around 70 per cent of the firm, has confirmed it will vote in favour of the transaction. The Reuters Founders Share Company, which controls a number of shares in the news agency, has also pledged its support of the move.

However a block from the Reuters Founders Share Company could have potentially ended the talks if it felt the acquisition would affect the journalistic integrity of the agency.

Chairman of Reuters Niall FitzGerald said he was "especially proud that Reuters journalism will continue to be governed by the principles of independence, integrity and freedom from bias".

The combined group will be named Thomson-Reuters and Thomson president and chief executive Richard J Harrington, 60, is expected to retire at the successful completion of the transaction.

Reuters chief executive Tom Glocer, 47, will now become head of the combined company.

"The combination of these two great businesses will create an exceptional global information company," said Mr Glocer.

"It will provide a broader offering to our customers, deliver value to our shareholders and create great opportunities for our people."

The new combined business will have revenues of around $12 billion (£6.05 billion) and nearly 49,000 employees.