Clarivate signs deal with CPA Global to create world leader in IP services
Global IP data provider Clarivate today announced that it will combine with IP software and technology firm CPA Global.
The transaction, subject to closing conditions and regulatory approvals, is expected to close in the fourth quarter of this year, and the combined company expects to benefit from approximately $90 million in annual cash tax savings from the transaction structure.
Jerre Stead, executive Chairman and CEO, Clarivate, said: “This is a transformative combination with a strong strategic fit between the two companies. It will create a full-service IP organisation which will provide customers with a wide range of products and services to help them make faster and smarter critical decisions.
“The many strategic and financial benefits are expected to enhance our growth and drive value for shareholders. The two companies share similar core values, along with deep industry, subject matter and technical expertise, that when combined, will strengthen our ability to accelerate the pace of innovation.”
In the all-stock transaction, CPA Global shareholders will receive approximately 218 million Clarivate ordinary shares, representing 35% of the ownership of Clarivate.
Simon Webster, CPA Global CEO, said: “Combining CPA Global and Clarivate is a natural next step for both businesses. The fit between our respective product offerings across the innovation and IP lifecycle, the commonality of our vision for the future of the industry, and the alignment of both companies’ cultures and values makes for an extremely exciting future for our customers, employees and shareholders alike.”
According to Clarivate, the proposed combination will build on product and innovation strengths held by the two companies and meet the needs of a growing market: CPA Global has a strong presence in Europe, while Clarivate is dominant in the US and Asia.
The significant cash flow generated will enable Clarivate to quickly reduce its debt, while also continuing to invest in product development and M&A opportunities, the company said.
CPA Global provides IP management and technology solutions to more than 12,000 law firm and corporate customers. For the full year 2019, CPA Global generated $564 million of pro forma revenue, with 4% organic growth.
In 2018, CPA Global acquired the IP management business of Clarivate Analytics, just months after buying market insight tool Filing Analytics and patent alert tool Citation Eagle.
Clarivate has also recently been consolidating its IP data services and late last year acquired case law data company Darts-ip.
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