logo
Plus   Neg
Share
Email

Wolters Kluwer's Health Division To Sell US-based ProVation For $180 Mln Cash

Wolters Kluwer N.V. (WTKWY.PK), a Dutch information services and solutions provider, announced Thursday that its Health division 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 or about 150 million euros in cash.

The divestment reflects the division's increasing focus on supporting healthcare providers in delivering improved patient outcomes by offering a broad and cohesive suite of products.

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 euros in 2016 and has approximately 200 employees.

It was in 2006 that Wolters Kluwer acquired ProVation Medical, which provides medical documentation, coding and workflow solutions to hospitals and ambulatory surgery centers in the United States.

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.

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."

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Follow RTT