Wolters Kluwer to divest its U.S. legal education business
September 27 2021 - 4:30PM
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 $33 million in 2020 and is
profitable. The iconic red and black books have become synonymous
with top-quality content. The business has about 50 full-time
employees.
“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 €60 million towards additional share
repurchases in order to mitigate the expected dilution to adjusted
earnings per share from the sale.
About Wolters KluwerWolters
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/AnalystsGerbert
van Genderen Stort
Meg
GeldensCorporate Communications
Investor Relationst + 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
InformationThis 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.
- 2021.09.27 Wolters Kluwer to divest its U.S. legal education
business
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