IP service provider Clarivate hasannounced that it has signed an agreement to merge with management software company CPA Global. The move, described as “a natural next step for both businesses”, represents a continuation in an M&A trend that has dominated the industry for the past few years.
In a press release sent out today, Clarivate confirmed that it has signed a definitive agreement to combine with CPA Global as part of an all-stock transaction. Going into more detail, it is understood that CPA Global shareholders will receive approximately 218 million Clarivate ordinary shares, which represents 35% pro forma ownership of Clarivate. Therefore, based on the average share price of Clarivate over the past 30 days, it values the enterprise at approximately $6.8 billion. The transaction is expected to close in the final quarter of 2020, with regulatory approvals still required.
Why will this merger benefit both parties? According to Clarivate, it offers “significant cost and tax savings opportunities”, including “anticipated cross selling” that is expected to drive growth in its software offerings. Further, the two companies are a “complementary strategic fit to meet the needs of a growing market” – especially geographically (with CPA Global particularly strong in Europe and Clarivate strong across North America and Asia) and in product offerings. Finally, it also presents “strong free cash flow generation”, meaning that Clarivate can “quickly reduce its debt” and “continue to invest in product development and M&A opportunities”.
Full Content: PE Hub
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
FCC Votes to Restore Net Neutrality Rules
Apr 25, 2024 by
nhoch@pymnts.com
Apple Rejects Spotify’s Updated App Over In-App Pricing Disclosure
Apr 25, 2024 by
CPI
FCC Set to Reinstate Net Neutrality Rules Today
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI