April 07, 2014) Wolters Kluwer today announced that, following regulatory approval, it has completed the acquisition of the 62% of Third Coast Holdings, Inc. which it did not already own for approximately $180 million (excluding acquired cash).
Third Coast Holdings is the parent company of Datacert, one of the world's leading providers of enterprise legal management (ELM) solutions, including legal billing and matter management solutions, serving corporate general counsel and law firms. Datacert serves more than 120 corporations in over 140 countries.
Datacert will be combined with Wolters Kluwer Corporate Legal Services' fast-growing ELM business, TyMetrix. The combination will establish an enhanced leadership position from which to offer broad, innovative solutions, accelerate international expansion, and create operating efficiencies.
This acquisition is in line with Wolters Kluwer's strategy of focusing its capital on its market-leading, high-growth businesses. Datacert had revenues of $57 million in 2013, of which over 80% is subscription based. Including integration benefits, Datacert is expected to deliver a return on total investment above Wolters Kluwer's after tax cost of capital (8%) within 3 to 5 years. The transaction is expected to be slightly earnings enhancing in the first full year. Wolters Kluwer is expected to record a non-cash book profit of approximately $100 million on its minority investment at the time of closing, subject to accounting adjustments.
"This acquisition is in line with our strategy to continue to invest capital to extend our leading, growing businesses, of which Corporate Legal Services is one", said Nancy McKinstry, CEO and Chairman of the Executive Board of Wolters Kluwer.
"The combination of these two great companies will enable us to deliver a broad range of solutions for the legal services community," said Richard Flynn, Group President and CEO, Wolters Kluwer Corporate Legal Services.
About Wolters Kluwer
Wolters Kluwer is a global leader in professional information services. Professionals in the areas of legal, business, tax, accounting, finance, audit, risk, compliance and healthcare rely on Wolters Kluwer's market leading information-enabled tools and software solutions to manage their business efficiently, deliver results to their clients, and succeed in an ever more dynamic world.
Wolters Kluwer reported 2013 annual revenues of €3.6 billion. The group serves customers in over 150 countries, and employs over 19,000 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.
Wolters Kluwer shares are listed on NYSE Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).