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Wolters Kluwer sells ProVation to Clearlake
Posted on Thursday, 11 January 2018 13:18
Wolters Kluwer’s health division is selling its ProVation Medical, the procedure documentation and order set management software business bought 12 years ago, to Clearlake Capital for USD 180.00 million.
The Minneapolis-based subsidiary is credited as a market-leader in gastroenterology procedure documentation software.
ProVation is also a major supplier of order sets to hospitals and ambulatory surgery centres, and had revenues of EUR 65.00 million in 2016 and about 200 employees.
A divestment is expected to take several months and Wolters Kluwer’s intends to use proceeds to carry out additional share buybacks “in order to mitigate the expected earnings dilution”.
ProVation is currently part of its parent’s health business, which provides evidence-based decision-making in clinical, nursing, and pharmaceutical settings, while at the same time supporting continuing education and medical research.
Customers include healthcare professionals, medical librarians, and corporate researchers and its portfolio comprises Emmi, Health Language, Lexicomp, Lippincott and Medi-Span, among others.
The health division generated revenue of EUR 1.11 billion, or a little over a quarter of total turnover of EUR 4.30 billion in the financial year ended 31st December 2017.
Wolters Kluwer had a multiple of 1.9x net debt to earnings before interest, tax, depreciation and amortisation, as of 30th September 2017.
The company completed USD 250.00 million in share buybacks in the first nine months of 2017, and USD 200.00 million in 2016, as part of a three-year programme of up to USD 600.00 million.
Wolters Kluwer recently sold Corsearch to Audax Private Equity and is in the process of handing over certain Swedish publishing and trade services assets to Karnov for an enterprise value of EUR 68.00 million.
The deal comes as the private investor, which is focused on software and technology-enabled services, acquired Perforce, a secure version control and collaboration platform, from Summit Partners.
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