Wolters Kluwer completes Prosoft transaction with Alterdata

Rhea-AI Summary

Wolters Kluwer announced the completion of its previously disclosed transaction combining certain Prosoft assets in Brazil with Alterdata. This was part of an agreement made on February 22, 2021, in exchange for a minority stake in the newly formed entity. In 2020, Prosoft generated revenues of €10 million and employed 210 people. Following the transaction, an unrealized foreign exchange loss of approximately €27 million was recognized due to the Brazilian real's devaluation against the euro. The company had reported annual revenues of €4.6 billion in 2020.

Positive

• Completion of the Prosoft and Alterdata transaction enhances Wolters Kluwer's presence in Brazil.
• Prosoft's integration contributes to a diversified service offering in the tax and accounting sector.

Negative

• Recognition of an unrealized foreign exchange loss of approximately €27 million.
• Transaction may lead to short-term challenges due to exchange rate volatility.

Wolters Kluwer completes Prosoft transaction with Alterdata

June 1, 2021 - Wolters Kluwer Tax & Accounting today announces that it has completed the previously disclosed combination of certain Prosoft assets in Brazil with those of Alterdata in exchange for a minority interest in the combined entity.

On February 22, 2021, Wolters Kluwer Tax & Accounting agreed to combine certain Prosoft assets in Brazil with those of Alterdata Tecnologia em Informática Ltda, in exchange for a minority interest in the newly combined entity. In 2020, Prosoft generated revenues of €10 million and had 210 employees. On completion, we have recognized an unrealized foreign exchange loss of approximately €27 million (non-cash) related to the devaluation of the Brazilian real against the euro. The Prosoft transaction was originally announced in our 2020 Full-Year Report.

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 (0)172 641 230                                       t + 31 (0)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.

Attachment

• 2021.06.01 Wolters Kluwer completes Prosoft transaction with Alterdata

FAQ

What is the significance of the Prosoft transaction for Wolters Kluwer (WTKWY)?

The Prosoft transaction enhances Wolters Kluwer's position in the Brazilian market, providing a minority interest in a combined entity with Alterdata.

How much revenue did Prosoft generate before the transaction in 2020?

In 2020, Prosoft generated revenues of €10 million.

What was the unrealized foreign exchange loss recognized by Wolters Kluwer post-transaction?

Wolters Kluwer recognized an unrealized foreign exchange loss of approximately €27 million due to the devaluation of the Brazilian real.

When was the Prosoft transaction announced?

The Prosoft transaction was announced on February 22, 2021.

What are the main services provided by Wolters Kluwer (WTKWY)?

Wolters Kluwer offers professional information, software solutions, and services across healthcare, tax and accounting, governance, risk and compliance, and legal sectors.