Wolters Kluwer Legal & Regulatory to Sell Certain Swedish Assets to Karnov Group
October 25, 2017 - Wolters Kluwer Legal & Regulatory has agreed to sell certain Swedish publishing and trade services assets to Karnov Group. The agreed enterprise value of the transaction is SEK 656 million (approximately €68 million).
The divestment is part of Wolters Kluwer's plan to further sharpen its focus on core markets where the Legal & Regulatory division is best positioned for long-term growth. The Swedish assets to be sold include legal and regulatory information, in print and digital formats, as well as printing and distribution services. The business lines to be sold had revenues of €22 million in 2016 and employ approximately 70 people.
Wolters Kluwer will continue to invest in legal software solutions in Sweden, and will retain a presence across Scandinavia to also serve customers with healthcare, tax and accounting, finance, and risk and reporting solutions.
"We are pleased that we have an agreement with Karnov Group. The company is very well-positioned in Sweden to support these products and activities and serve the needs of customers," said Stacey Caywood, CEO, Wolters Kluwer Legal & Regulatory.
Flemming Breinholt, CEO, Karnov Group, commented, "This acquisition provides us with a unique opportunity to broaden our legal offering with additional in-depth commentaries and analysis. The combination we are announcing today will enable Karnov Group to provide customers with the best service and product offering for legal and regulatory information in the Swedish market. Once the transaction is complete, Karnov Group will continue to develop its digital services, strengthen relationships with expert authors, and work tirelessly with employees to integrate, grow and nurture the organization."
The Karnov Group serves leading legal, tax and accounting professionals in Sweden and Denmark with online research solutions, continued legal education, and decision support tools for improved client advisory, and continuously invests in new technology to support the ever-changing needs of information professionals.
The transaction is subject to customary closing conditions, certain post-closing working capital and net cash adjustments, and conclusion of a union information and consultation process. Completion is expected in early 2018. Wolters Kluwer intends to mitigate the expected dilution to adjusted earnings per share through share buybacks.
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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Wolters Kluwer Corporate Communications
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Wolters Kluwer Legal & Regulatory Communication
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Forward-looking Statements and Other Important Legal Information
This report contains forward-looking statements. These statements may be identified by words such as "expect", "should", "could", "shall" and similar expressions. Wolters Kluwer cautions that such forward-looking statements are qualified by certain risks and uncertainties that could cause actual results and events to differ materially from what is contemplated by the forward-looking statements. Factors which could cause actual results to differ from these forward-looking statements may include, without limitation, general economic conditions; conditions in the markets in which Wolters Kluwer is engaged; behavior of customers, suppliers, and competitors; technological developments; the implementation and execution of new ICT systems or outsourcing; and legal, tax, and regulatory rules affecting Wolters Kluwer's businesses, as well as risks related to mergers, acquisitions, and divestments. In addition, financial risks such as currency movements, interest rate fluctuations, liquidity, and credit risks could influence future results. The foregoing list of factors should not be construed as exhaustive. Wolters Kluwer disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Source:Wolters Kluwer NV