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 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).