CorporateInvestorsLegalApril 07, 2014

Wolters Kluwer completes acquisition of remaining 62% of Third Coast Holdings

Third Coast Holdings is the parent company of Datacert, one of the world's leading providers of enterprise legal management (ELM) solutions.

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 (WKL) is a global leader in professional information, software solutions, and services for the health, tax & accounting, governance, risk & compliance, and legal & 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.

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