Thompson Street Portfolio Company Silverchair Announces Agreement to Acquire Scholarone

Rhea-AI Summary

Silverchair, a Thompson Street Capital Partners portfolio company, has announced an agreement to acquire ScholarOne from Clarivate Plc (NYSE:CLVT). Silverchair provides software and services to STM content publishers, serving over 400 publishers through its content management system. ScholarOne, specializing in manuscript submission and peer review management, serves more than 600 publishers and processes over three million manuscripts annually. The acquisition aims to create a comprehensive solution for scholarly publishing and is expected to close in Q4 2024.

Positive

• ScholarOne processes over 3 million manuscripts annually, representing over 50% of total scholarly output
• Combined entity will serve over 1,000 publishers
• Integration creates comprehensive end-to-end publishing solution
• Substantial investments planned for ScholarOne platform development

Negative

• Transaction terms and financial details not disclosed
• Acquisition completion subject to closing conditions

Insights

Financial Analyst

The divestiture of ScholarOne by Clarivate represents a strategic move to streamline operations and potentially improve capital allocation. While financial terms weren't disclosed, this transaction will likely have minimal impact on Clarivate's $4.8B market cap. ScholarOne, though a significant player in scholarly publishing software with over 600 publisher clients, is likely a non-core asset for Clarivate.

The sale aligns with industry trends of consolidation in academic publishing technology, where specialized platforms are being integrated to create end-to-end solutions. For Clarivate investors, this move suggests a focus on core business segments and potential balance sheet optimization, though the financial impact may be modest without disclosed terms.

Tech Industry Analyst

The merger of Silverchair and ScholarOne creates a significant player in the scholarly publishing technology sector. The combined entity will serve over 1,000 publishers, processing more than 3 million manuscripts annually. This consolidation could lead to enhanced product integration and improved workflow solutions for academic publishing.

The strategic value lies in creating an end-to-end platform that manages the entire publishing lifecycle, from manuscript submission through content distribution. For Clarivate, divesting ScholarOne allows focus on core analytics and intellectual property services while ensuring the platform continues under specialized management.

ST. LOUIS--(BUSINESS WIRE)-- Silverchair, a portfolio company of Thompson Street Capital Partners (TSCP), announced today that is has entered into a definitive agreement with Clarivate Plc (NYSE:CLVT) to acquire ScholarOne, a leading provider of software and services to scholarly publishers and societies. Terms of the transaction were not disclosed.

Founded in 1993 and based in Charlottesville, VA, Silverchair provides a suite of software and services to leading global publishers of scientific, technical, and medical (STM) content. The company has leveraged its feature-rich and extensible content management system (CMS), the Silverchair Platform, to build new products that help more than 400 publishers manage, distribute and monetize STM content.

Founded in 2000 and also based in Charlottesville, VA, ScholarOne is a leading provider of manuscript submission, peer review, and editorial management software and services to scholarly publishers and societies. ScholarOne’s submission platforms serve more than 600 publishers and enable more than three million manuscripts and conference abstracts each year, representing more than half of the total output of the scholarly community.

“For more than 30 years, Silverchair has served the needs of publishers as an independent technology partner,” said Silverchair CEO Will Schweitzer. “We believe that innovation and technology can help fulfill the promise of scholarship, and we will make substantial investments in ScholarOne to meet the needs of publishers, editors, and authors. This acquisition was part of founder Thane Kerner’s long-term vision for Silverchair, and I’m pleased to bring it to fruition with the strong support of Thompson Street Capital Partners.”

“The ScholarOne team is excited to continue serving the scholarly publishing community, now as an independent, end-to-end partner,” said Josh Dahl, Senior Director of Product Management for ScholarOne. “We look forward to collaborating with our expanded community to amplify the impact of scholarship by developing these leading technology platforms to meet the needs of publishers, editors, and authors.”

Craig Albrecht, Managing Director, TSCP said, “Silverchair’s acquisition of ScholarOne presents an opportunity to leverage both companies’ powerful technology platforms to enable new products and services and deliver more value to customers across the scholarly publishing lifecycle.”

Joe St. Geme, Managing Director, TSCP added, “We couldn’t be more excited about bringing together these two industry leaders to create a comprehensive, end-to-end solution for our publisher and association customers.”

The acquisition is expected to close within the fourth quarter of 2024 subject to the satisfaction of customary closing conditions.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241029942385/en/

Sarah Bowes

BackBay Communications

(860) 805-1759

sarah.bowes@backbaycommunications.com

Source: Thompson Street Capital Partners

FAQ

When will Silverchair complete the acquisition of ScholarOne from Clarivate (CLVT)?

The acquisition is expected to close within the fourth quarter of 2024, subject to customary closing conditions.

How many publishers does ScholarOne currently serve?

ScholarOne serves more than 600 publishers and processes over three million manuscripts and conference abstracts annually.

What percentage of scholarly community output does ScholarOne handle?

ScholarOne processes more than half of the total output of the scholarly community through its submission platforms.

What is the purpose of Silverchair's acquisition of ScholarOne from CLVT?

The acquisition aims to create a comprehensive, end-to-end solution for publisher and association customers, combining both companies' technology platforms to enable new products and services.