Clarivate's IP unit draws private equity interest, sources say
LONDON/NEW YORK - CD&R and Nordic Capital are among private equity groups weighing possible bids for Clarivate's intellectual property (IP) unit, two people with knowledge of the matter told Reuters.
Clarivate, which has headquarters in London, said in February it was exploring strategic alternatives including potential divestments as part of plans to create value for shareholders, and had appointed Morgan Stanley and Moelis & Company as financial advisers.
The New York-listed information group has been holding conversations with bidders about its IP unit and invited them last month to submit indications of interest, the people said, speaking on condition of anonymity because the matter is private. The two private equity funds were among those that submitted expressions of interest, the people said.
The sources cautioned that no deal was guaranteed and Clarivate may decide to focus on other divestitures if offers for its IP unit are not eventually high enough.
Spokespeople for Clarivate, CD&R and Nordic Capital declined to comment.
The plans come after Clarivate's shares have fallen 90% from a high in 2021 as it struggles with organic growth and customer retention.
Revenue at the group was $2.56 billion in 2024, compared to $2.63 billion a year earlier, while earnings before interest, tax, depreciation and amortisation (EBITDA) narrowed to $1 billion from $1.12 billion a year earlier, according to its latest annual report.
Clarivate, which has an enterprise value of $6.6 billion according to LSEG data, is hoping for a valuation north of $4 billion for the IP assets, the two people and a third one said.
However, certain prospective bidders believe the IP unit may be worth less, the people said.
EBITDA at Clarivate's IP unit fell by 10.5% to $358 million for the year ending December 2024, partly driven by lower subscription revenues and a decline in renewal volumes, according to its latest annual report.
Nordic Capital has been considering buying the IP unit via Anaqua, the IP software business it acquired last November for $2.5 billion, the people said. Anaqua did not respond to requests for comment.
Clarivate's top shareholder is private equity firm Leonard Green & Partners with a 16.9% stake, followed by Clarkston Capital Partners with 10% and Italy's Agnelli family with 9.7%, according to LSEG data.
Clarivate's IP business, previously called CPA Global, offers software and services that manage patents, trademarks and contracts for law firms and corporations. It also provides the Derwent World Patents Index (DWPI) database, which contains patent applications and grants from patent issuing authorities. Clarivate agreed to combine with the business in 2020 in a $6.8 billion deal.
(Reporting by Amy-Jo Crowley in London and Milana Vinn in New York; Editing by Anousha Sakoui and Susan Fenton)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
9 hours ago
- Khaleej Times
Musk, Trump to hold 'peace call' after feud; Tesla shares rise
Tesla shares rose on Friday as investors took some comfort from White House aides scheduling a call with CEO Elon Musk to broker peace after a public feud with US President Donald Trump. Trump threatened to cut off government contracts to Musk's companies, while Musk suggested Trump should be impeached, turning their relationship into an all-out brawl on social media. The electric carmaker's shares were up around 5 per cent in Frankfurt on Friday, having closed down 14.3 per cent on Thursday in New York, losing about $150 billion in market value. "It's unlikely that Trump will end subsidies and contracts with Tesla. Those are obviously threats that are unlikely to come into fruition," said Fiona Cincotta, senior market analyst at City Index. Stay up to date with the latest news. Follow KT on WhatsApp Channels. "I don't expect this to blow out into anything more serious than a war of words for a couple of days." Analysts said some of Thursday's selloff was down to factors beyond Musk's personal relationship with the president. "We think the stock's sell-off reflects a number of other factors: an unjustified run-up following its Q1 earnings release, ongoing market share losses in China and Europe, and a realisation that next week's Robotaxi launch in Austin could disappoint," Garrett Nelson, senior equity analyst at CFRA Research, said in a note. "We remain at Hold, expecting more volatility in the near term. Buckle up!" he said. Tesla shares, which hit record highs when Trump won the election in November, have since been punished harshly, as Musk's cost-cutting role in the US administration hurt Tesla's image with shareholders and consumers alike. The stock is still considered part of Wall Street's elite "Magnificent 7" club of the seven biggest companies by market cap, even though it has now dropped to ninth position in terms of value, behind Warren Buffett's Berkshire Hathaway and Broadcom. It has also dropped out of the $1-trillion club of companies with market value above this level. The broader stock market got hit on Thursday as the feud between Musk and Trump intensified. By Friday, with signs of a possible truce on the horizon, stock futures turned higher as well, with those on the SP 500 up 0.4 per cent. "Elon Musk has already signalled that he is open to a cooling off period with Trump, and stock market futures are higher on Friday morning. Thus, the risk could be more localised with Tesla shares in the short term," Kathleen Brooks, XTB research director, said.
Khaleej Times
21 hours ago
- Khaleej Times
Hollywood hits the high seas as actors Hugh Jackman and Ryan Reynolds Join SailGP
When Hollywood royalty meets high-speed hydrofoils, you know the waves are about to get a lot bigger, and more entertaining. In a splashy new chapter for Australian sport, actors Hugh Jackman and Ryan Reynolds have officially joined forces as co-owners of Australia's championship-winning SailGP team - now rebranded as the BONDS Flying Roos. The announcement comes as part of a landmark partnership with iconic Aussie underwear brand BONDS, which steps in as the team's first-ever Title Partner. The newly minted BONDS Flying Roos will make their official debut under their new banner this weekend at the Mubadala New York Sail Grand Prix on June 7 =8. With a championship title within reach and new co-owners watching from the docks, the pressure, and the excitement, have never been higher. Candian Reynolds, who starred in the Deadpool film series, commented, 'We're incredibly excited to set sail together in this new adventure. Hugh brings a deep love for and pride in his home country as well as being an avid fan of sailing. Emotional Support 'He will also be bringing his overly clingy emotional support human along for the ride. Apologies in advance to Australia. No comment on whether we're writing this in our BONDS. No further questions.' Jackman famously played the superhero Wolverine for over 17 years in the X-Men film series. The pairing of Hollywood stardom with elite competitive sailing is as unexpected as it is inspiring For Jackman, it's a personal homecoming to his Australian roots and a lifelong passion for the ocean. For Reynolds, it's the latest chapter in his ever-expanding portfolio of offbeat and ambitious ventures. Together, they bring global star power to an elite sport built on adrenaline and cutting-edge technology. Foiling at Full Speed Founded in 2019 by Sir Russell Coutts and Larry Ellison, SailGP pits 12 national crews in identical 50-foot foiling catamarans, ripping past 100 km/h just metres from shore in the world's most iconic harbours. Led by Olympic gold medallist Tom Slingsby, Australia has owned the leaderboard winning three championships in four seasons, and embarks on a new chapter aimed at super-charging fan engagement far beyond the dock. Slingsby, who also serves as the team's Driver, CEO, and now fellow co-owner of the BONDS Flying Roos said,'This is an incredible milestone for us and our sport, having global icons Hugh Jackman and Ryan Reynolds come on board as co-owners of our team. 'They bring unmatched star power, a love for storytelling, and a sharp sense of humour that fits perfectly with our team. With BONDS joining as our Title Partner and the launch of the BONDS Flying Roos, we're building something distinctly Australian; a team driven by spirit, resilience, and national pride.' With the introduction of the BONDS Flying Roos, Australia's team isn't just racing for trophies- it's aiming to redefine how fans connect with the sport of sailing. Andy Thompson, Managing Director of SailGP, welcomed the iconic actors aboard and said: 'This marks a landmark moment not just for the Australia SailGP Team, but for the trajectory of SailGP globally. 'We're thrilled to officially welcome Hugh Jackman and Ryan Reynolds as co-owners of the newly-branded BONDS Flying Roos, bringing with them an extraordinary combination of global reach, vision, commercial nous and no doubt plenty of fun along the way too.' New Era, Title Partner The BONDS multi-year partnership marks the first time the Australian SailGP Team has had a Title Partner. 'BONDS is famous for its signature Aussie spirit and it's no secret that Aussies love sport, being on the water, and just a hint of danger. Enter SailGP, the next exciting chapter in our journey to take BONDS to the world,' said Tanya Deans, President of BONDS Australia. 'We're thrilled to join forces with such an iconic duo and an adrenaline-fueled sport ready for its moment in the spotlight. And how do you say no to Hugh Jackman? He's Australian royalty! As we set sail on this new adventure, the BONDS Flying Roos have one less thing to worry about – we've got their backs (and bums) covered.'
Arabian Business
a day ago
- Arabian Business
Dubai's FIVE Holdings mulls IPO and listing in London or New York: Report
FIVE Holdings, the Dubai-based company that owns the FIVE brand of hotels, is said to be considering listing in London or New York, according to a Reuters report. Founder and Chairman Kabir Mulchandani, who has targeted a 2025 IPO for the past couple of years, had previously spoken of a primary listing in Dubai and a secondary listing in one of the international markets. The Reuters report cites three people with knowledge of the matter. Five Holdings IPO FIVE Holdings did not respond to Reuters' request for comments, but the agency said that London could be a strong candidate, given a majority of clients at FIVE's Ibiza clubs are British nationals and that business generates significant revenues for the group. In November 2023, FIVE Holdings acquired a 100 per cent equity interest in the Pacha Group, in a deal valued at €302.5m ($345m). That same year, Muchandani spoke about the IPO for the first time and said: 'The plan right now is 2025. For us, we are very well capitalised now, the goal is to continue to improve our transparency and our governance, to do the investor calls on a quarterly basis and to act like a public company, before we become a become a public company, and not to raise money and then figure out what to do. 'There are always a lot of advisors saying, look at Dubai, but also look at another international market. I think that may not be the correct advice to take it forward. 'The way the Dubai capital markets is developing over the last few years, it is entirely possible. At the end of the day, even though we are global, we are a made-in-Dubai company. So, for us, being part of Dubai capital markets is a critical part of our story.' Mulchandani also said that the IPO was very important for FIVE Holdings because of the employee stock options programme that it was rolling out. 'One of the major reasons why we would like to do this is because we are launching a very, very important employee stock option program,' said Mulchandani. 'A significant portion of the company is going to be dedicated to the employees over time. And this is not just the C-suite, not the CEOs and the senior people. This is down to the person who is going to bring your bags up to your rooms. 'It's a very widely distributed stock. The goal is to make sure that they have the liquidity and see what the value of the work and the effort they're putting in.' The company and its advisers are planning to start the listing process by the end of the year, two of the people in know told Reuters. The three people spoke on condition of anonymity because they were not authorised to speak publicly.
