Wolters Kluwer completes divestment U.S. legal education business

Rhea-AI Summary

Wolters Kluwer announced the completion of its divestment of its U.S. legal education business to Transom Capital Group as of December 1, 2021. Following this sale, the company will utilize the post-tax proceeds for share repurchases to offset expected earnings per share dilution. A third-party mandate has been granted to execute €60 million in share buybacks, pushing total repurchases for 2021 to €410 million. Wolters Kluwer reported €4.6 billion in 2020 revenues and operates in over 40 countries.

Positive

• Completion of divestment enhances strategic focus.
• Plans to use proceeds for €60 million share buyback mitigates earnings dilution.
• Total share repurchases for 2021 will reach €410 million, supporting shareholder value.

Negative

• None.

 Wolters Kluwer completes divestment U.S. legal education business

December 1, 2021 — Wolters Kluwer today announces that it has completed the divestment of its U.S. legal education business to Transom Capital Group.

As previously announced on September 27, Wolters Kluwer intends to deploy the post-tax proceeds towards additional share repurchases in order to mitigate the expected dilution to adjusted earnings per share from the sale.

To this end, Wolters Kluwer has now granted a mandate to a third-party to execute up to €60 million in share buybacks on our behalf in the remainder of this year (the period starting December 2, 2021, up to and including December 29, 2021). Including this mandate, when completed, total share repurchases will reach €410 million in 2021.

This mandate is governed by the limits of relevant laws and regulations (in particular Regulation (EU) 596/2014) and Wolters Kluwer’s Articles of Association. Repurchased shares are added to and held as treasury shares and are either cancelled or held to meet future obligations arising from share-based incentive plans.

About Wolters Kluwer
Wolters Kluwer (WKL) is a global leader in professional information, software solutions, and services for the healthcare; tax and accounting; governance, risk and compliance; and legal and regulatory 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 2020 annual revenues of €4.6 billion. The group serves customers in over 180 countries, maintains operations in over 40 countries, and employs approximately 19,200 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.

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 (ADR) program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

For more information, visit www.wolterskluwer.com, follow us on Twitter, Facebook, LinkedIn, and YouTube.

Media                                                                Investors/Analysts
Gerbert van Genderen Stort                              Meg Geldens
Corporate Communications                               Investor Relations
t + 31 172 641 230                                             t + 31 172 641 407        
g.van.genderen.stort@wolterskluwer.com         ir@wolterskluwer.com

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.

This press release contains information which is to be made publicly available under Regulation (EU) 596/2014.

 

Attachment

• 2021.12.01 Wolters Kluwer completes divestment U.S. legal education business

FAQ

What is the significance of Wolters Kluwer's divestment of its U.S. legal education business?

The divestment allows Wolters Kluwer to focus on core operations and redeploy resources towards share repurchases, enhancing shareholder value.

How much is Wolters Kluwer planning to spend on share buybacks?

Wolters Kluwer has a mandate to execute up to €60 million in share buybacks, contributing to a total of €410 million in 2021.

What are the financial results reported by Wolters Kluwer for 2020?

Wolters Kluwer reported annual revenues of €4.6 billion for 2020.

What is the stock symbol for Wolters Kluwer?

Wolters Kluwer is traded on the over-the-counter market in the U.S. under the symbol WTKWY.

When was the divestment of the U.S. legal education business completed?

The divestment was completed on December 1, 2021.