Clarivate Plc, a global leader in providing trusted information and insights to accelerate the pace of innovation, has announced the completion of the previously announced acquisition of CPA Global, creating an intellectual property (IP) powerhouse.
Clarivate will now offer thousands of law firms and corporate customers world class IP solutions from leading brands covering patent and trademark research solutions, expanded IP services capabilities, IP management and renewal solutions and domain management, all underpinned by extensive human expertise, unparalleled data and powerful technology.
In connection with the transaction, former CPA Global shareholders received approximately 217 million Clarivate ordinary shares, representing 35% pro forma fully diluted ownership of Clarivate.
Clarivate has secured $1.6 billion of senior secured term loan B financing that, in conjunction with cash on hand, will be used to fund the repayment of CPA Global’s $2.0 billion of outstanding debt.
Concurrent with the closing of the transaction, the Clarivate board of directors increased from 11 to 13 members.
The full year 2020 outlook does not reflect any impact from the acquisition of CPA Global, and assumes no further currency movements, acquisitions, divestitures, or unanticipated events. Clarivate expects to provide its full year 2021 outlook reflecting the acquisition of CPA Global at its Investor Day, which will be held on November 10, 2020.
The full year 2020 outlook includes Non-GAAP financial measures. Important disclosure and reconciliations of the financial measures to the most directly comparable GAAP measure can be found at ‘Reconciliation of Certain Non-GAAP financial measures’.
Adjusted diluted EPS for 2020 is calculated based on approximately 394.1 million fully diluted weighted average shares outstanding, an increase of approximately 64.1 million shares or 20%, compared to 329.8 million shares outstanding at the end of December 31, 2019. The increase in shares is primarily driven by the February 2020 offering of 27.6 million shares, with proceeds used to fund a portion of the cash consideration for the acquisition of DRG, the issuance of approximately 29.0 million ordinary shares from the exercise of outstanding warrants, and the issuance of 14.0 million ordinary shares from the June 2020 public offering.
Brought to you by Scope e-Knowledge Center, a trusted global partner for digital content transformation solutions - Abstracting & Indexing (A&I), Knowledge Modeling (Taxonomies, Thesauri and Ontologies), and Metadata Enrichment & Entity Extraction.
Click here to read the original press release.
