Wolters Kluwer to divest its U.S. legal education business
Wolters Kluwer has signed a binding agreement to divest its U.S. legal education business to Transom Capital Group for $88 million in cash. This unit, which generated $33 million in revenue in 2020, specializes in textbooks and digital educational solutions for law students. Proceeds from the sale will be utilized for share repurchases to counter adjusted EPS dilution. The transaction, expected to yield a one-time capital gain, is subject to customary closing conditions and will take several months to finalize.
- Divestment of U.S. legal education business for $88 million cash enhances financial flexibility.
- Proceeds to be used for share repurchase, mitigating adjusted EPS dilution.
- U.S. legal education business was profitable with $33 million revenue in 2020, indicating strong asset sale.
- Divestment may lead to loss of a profitable segment and related expertise.
- Uncertainty regarding impact on overall business strategy and revenue diversification.
Wolters Kluwer to divest its U.S. legal education business
September 27, 2021 – Wolters Kluwer Legal & Regulatory U.S. announces that it has signed a binding agreement to sell its U.S. legal education business to Transom Capital Group for $88 million in cash. Wolters Kluwer intends to deploy the post-tax proceeds towards additional share repurchases to mitigate the adjusted EPS dilution related to the disposal.
The divestment will allow Wolters Kluwer Legal & Regulatory U.S. to further advance its focus on supporting legal professionals with the domain expertise and state-of-the-art solutions that they need.
The U.S. legal education business, which mainly produces textbooks and innovative digital educational solutions for law students, recorded revenues of
“After careful consideration, we are delighted to have found a new owner for the legal education business who recognizes the value of our highly regarded content and solutions and who is committed to further growing the business,” said Dean Sonderegger, Senior Vice President and General Manager, Wolters Kluwer Legal & Regulatory U.S. “We are confident that Transom Capital Group will continue to serve authors, faculty, students and others in the legal education community with excellence.”
James Oh, Managing Partner of Transom Capital Group said, “We look forward to serving the legal education community as we further invest and grow the business. One of Transom’s core strategies has been investing in market-leading brands. We look forward to continuing the success the business has accomplished and investing in various growth avenues available to the business. We respect and admire the team that will now become part the Transom family.”
Completion of the disposal is subject to customary closing conditions and is expected to take several months. The divestment is expected to result in a one-time (non-benchmark) capital gain. Upon completion, Wolters Kluwer intends to deploy the post-tax proceeds of approximately
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
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).
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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.
This press release contains information which is to be made publicly available under Regulation (EU) 596/2014.
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