Wolters Kluwer Governance, Risk & Compliance Signs Agreement to Divest Corsearch
October 23, 2017 - Wolters Kluwer Governance, Risk & Compliance (GRC) announces that, following a strategic review, it has agreed to sell Corsearch, its trademark solutions business, to Audax Private Equity for $140 million in cash.
On April 24, 2017, Wolters Kluwer announced a review of strategic alternatives for Corsearch, our trademark solutions unit that is part of GRC (Legal Services).
The industry in which Corsearch operates is evolving from providing traditional trademark clearance and protection services to delivering end-to-end digital solutions for brand management and marketing professionals. Although this presents new opportunities for Corsearch, Wolters Kluwer GRC has decided to focus its investment on developing its core regulatory compliance and risk management software and services for corporations, financial institutions, and law firms.
Tobias Hartmann, General Manager of Corsearch, said, "I am proud of all that Corsearch has achieved with Wolters Kluwer. We are excited to be partnering with Audax as their vision aligns strongly with Corsearch's existing business and growth strategy. Audax' operational and international experience will be a valued resource to us in the next stage of our growth."
Geoffrey Rehnert, Co-Chief Executive Officer, Audax Group, said, "Corsearch is a leader in the trademark solutions field and has significant opportunities to capitalize on favorable industry dynamics and a healthy market environment. We look forward to working with Tobias Hartmann and the Corsearch team to build a leading platform through organic growth and add-on acquisitions."
The transaction, which is subject to customary closing conditions, is expected to be completed prior to the end of 2017. Corsearch had revenues of approximately €50 million in 2016 and employs 211 FTEs in 9 countries. As previously indicated, Wolters Kluwer intends to mitigate the expected dilution to adjusted earnings per share by way of share buybacks.
Audax Private Equity has a track record of investing in - and building - middle market platform companies, fueling their revenue growth, optimizing their operations, and significantly increasing their long-term value.
About Wolters Kluwer
Wolters Kluwer N.V. (AEX: WKL) is a global leader in information services and solutions for professionals in the health, tax and accounting, finance, risk and compliance, and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services.
Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries, and employs 19,000 people worldwide.
Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).
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Source:Wolters Kluwer NV