Wolters Kluwer N.V: Wolters Kluwer to divest finance risk

Wolters Kluwer N.V: Wolters Kluwer to divest finance risk

Title: Wolters Kluwer to Divest Finance, Risk, and Regulatory Reporting Unit

Wolters Kluwer Financial & Corporate Compliance (FCC) has announced a significant strategic move by signing a binding agreement to sell its Finance, Risk, and Regulatory Reporting (FRR) unit to Regnology Group GmbH (Regnology) for an enterprise value of approximately €450 million. This transaction, which is subject to regulatory approval and employee consultations, is expected to close in the fall of 2025.

The divestment will enable FCC to focus its efforts and investments on developing its existing positions in U.S. banking compliance and corporate legal and compliance services. Lisa Nelson, CEO of Wolters Kluwer Financial & Corporate Compliance, stated, "With over 30 years of experience in supporting large banks with a broad range of technology solutions, Regnology is an excellent home for FRR as it continues to build out its integrated regulatory and risk solutions to support ever-more complex and granular data reporting."

Rob Mackay, CEO of Regnology, expressed his enthusiasm for the acquisition, stating, "I am pleased to welcome the FRR team to Regnology. Their deep domain expertise and established presence across key markets will significantly strengthen our ability to serve financial institutions globally. This acquisition allows us to expand into new territories and accelerate our vision of delivering unified regulatory, risk, and finance reporting solutions. I look forward to building on FRR’s strengths and unlocking new opportunities for clients and employees alike."

In 2024, the FRR unit generated revenues of €123 million, which was approximately 10% of the FCC division's total revenues. The transaction is expected to result in a non-benchmark capital gain for Wolters Kluwer upon completion. The use of net after-tax proceeds from the divestment will be determined after closing.

This move aligns with Wolters Kluwer's strategy to streamline its operations and concentrate on core competencies, while also allowing the company to explore new growth opportunities in its key markets.

References
[1] https://www.wolterskluwer.com/en/news/wolters-kluwer-to-divest-its-finance-risk-and-regulatory-reporting-unit
[2] https://seekingalpha.com/news/4469088-wolters-kluwer-to-divest-its-finance-risk-and-regulatory-reporting-unit
[3] https://www.stocktitan.net/news/WTKWY/wolters-kluwer-to-divest-its-finance-risk-and-regulatory-reporting-s05onwcfpx2c.html