Wolters Kluwer Health has signed an agreement to divest ProVation Medical, its procedure documentation and order set management software business, to Clearlake Capital Group, L.P. for $180 million (approximately €150 million) in cash.
The divestment reflects the Health division’s increasing focus on supporting healthcare providers in delivering improved patient outcomes by offering a broad and cohesive suite of products, from healthcare learning and research, to advanced clinical decision support, terminology management and patient engagement. This broad-based, multispecialty and integrated range of solutions can most effectively help healthcare providers in improving outcomes and reducing variability in care.
ProVation Medical is the U.S. market-leader in gastroenterology procedure documentation software and is also a major supplier of order sets to hospitals and ambulatory surgery centers. The business had revenues of €65 million in 2016 and has approximately 200 employees.
Diana Nole, CEO of Wolters Kluwer Health, said, “As we continue to evolve the Wolters Kluwer Health business, we are pleased to have found a buyer for ProVation who has extensive experience in software and technology and is well-positioned to continue delivering superior products to our mutual customers.”
Behdad Eghbali, Co-Founder and Managing Partner of Clearlake, and Prashant Mehrotra, Partner of Clearlake, said, “We are excited to welcome ProVation as a new platform investment into the Clearlake portfolio. The business has a strong reputation among its customer base for providing mission critical software with the highest degree of customer satisfaction. We are committed to investing in the business and partnering with the ProVation team to help drive the next phase of growth.”
Completion of the divestment is subject to customary closing conditions and is expected to take several months. Assuming completion, Wolters Kluwer intends to deploy the proceeds of the divestment towards additional share repurchases in order to mitigate the expected earnings dilution.