CorporateInvestorsMarch 05, 2018

Wolters Kluwer Health to acquire Firecracker

Wolters Kluwer Health announces today that it has signed an agreement to acquire Firecracker, an adaptive learning, assessment, and study-planning solution used by more than 20 percent of U.S. medical students.

Firecracker will become part of the Health Learning, Research & Practice group, which produces high quality medical education and practice content under the Lippincott imprint.

Founded in 2009, Firecracker uses a technology- and data-driven approach to improve medical student learning in preparation for high stakes exams, including the United States Medical Licensing Examination (USMLE). The platform, in which more than 85 million questions are answered annually, is powered by an adaptive algorithm that delivers personalized learning and remediation to ensure ongoing retention of content and preparedness for medical school finals and certification exams.

“We’re excited to expand our portfolio of online evidence-based learning tools with Firecracker’s proven technology,” said Diana Nole, CEO, Wolters Kluwer Health. “Combined with Lippincott premium content and solutions, Firecracker enhances our position in the medical education market and helps us further leverage machine learning and advanced technologies to help clinicians deliver the best quality care to patients.”

Firecracker has 16 employees and is headquartered in Boston, Massachusetts. Revenues are recurring in nature and derived from the U.S. market. Wolters Kluwer expects the acquisition to deliver a return on invested capital above its after tax weighted average cost of capital (8%) within three to five years of completion and to have an immaterial impact on adjusted earnings.

Completion of the transaction is subject to customary closing conditions.

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.

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.
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Annemarije Dérogée-Pikaar
Annemarije Dérogée - Pikaar
Director, Corporate Affairs & Communications
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Meg Geldens
Meg Geldens
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Investor Relations