ComplianceInvestorsSeptember 08, 2016

Wolters Kluwer Governance, Risk & Compliance agrees to sell Indirect Loan Origination Solutions

Wolters Kluwer Governance, Risk & Compliance (GRC) today announced it has signed an agreement to sell its indirect loan origination solutions, including the AppOne software platform, to The Reynolds and Reynolds Company, a provider of software, documents, and professional services to automotive retailers, for €32 million in cash.

Wolters Kluwer’s intended divestment is in line with the GRC division’s strategy to focus its financial services group of businesses on growing its market-leading compliance content and expert solutions for banks and other financial institutions globally.

The company’s AppOne indirect loan origination platform, compliance documents and risk mitigation services are used primarily by automotive, marine, powersports and recreational vehicle dealers across the U.S. to facilitate interaction with lenders. Wolters Kluwer expects to report a €13 million book gain, net of tax, on the divestment. Reynolds and Reynolds anticipates extending offers of employment to 36 Wolters Kluwer employees as part of the transaction.

“As a leader in automotive dealership solutions, Reynolds and Reynolds is well-positioned to continue to support the unique needs of indirect loan origination customers,” said Richard Flynn, CEO of Wolters Kluwer’s GRC division. “Wolters Kluwer will continue to invest in our core regulatory compliance business which serves thousands of banks, credit unions, and mortgage lenders globally.”

“At the same time, we remain committed to providing these banks and other licensed lenders with our proven regulatory expertise, solutions and services for their mortgage, consumer and commerical lending as well as investment and insurance businesses,” said Steven Meirink, Executive Vice President and General Manager of the Compliance Solutions business unit for Wolters Kluwer’s GRC division.

“We continually look for ways to grow our business,” said Jerry Kirwan, Senior Vice President and General Manager of Reynolds Document Services at Reynolds and Reynolds. “Reynolds already offers an extensive documents product portfolio, along with well-known expertise in business forms compliance for dealerships. By acquiring these additional documents, software and services business, Reynolds will be able to serve an even broader set of markets and customers even more effectively.”

The divestiture is expected to close by the end of 2016.

Forward-looking statements and other important legal information
This report contains forward-looking statements. These statements may be identified by words such as “expect”, “should”, “could”, “shall” and similar expressions. Wolters Kluwer cautions that such forward-looking statements are qualified by certain risks and uncertainties that could cause actual results and events to differ materially from what is contemplated by the forward-looking statements. Factors which could cause actual results to differ from these forward-looking statements may include, without limitation, general economic conditions; conditions in the markets in which Wolters Kluwer is engaged; behavior of customers, suppliers, and competitors; technological developments; the implementation and execution of new ICT systems or outsourcing; and legal, tax, and regulatory rules affecting Wolters Kluwer’s businesses, as well as risks related to mergers, acquisitions, and divestments. In addition, financial risks such as currency movements, interest rate fluctuations, liquidity, and credit risks could influence future results. The foregoing list of factors should not be construed as exhaustive. Wolters Kluwer disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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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Annemarije Dérogée-Pikaar
Annemarije Dérogée - Pikaar
Director, Corporate Affairs & Communications
Global Branding & Communications
Meg Geldens
Meg Geldens
Vice President, Investor Relations
Investor Relations
Paul Lyon
Paul Lyon
Director of Global Corporate Communications - Banking & Regulatory Compliance
Global Marketing, Communications & Planning
Governance, Risk & Compliance Division