Wolters Kluwer

Company Information & Key Figures

About

Founded in 1836, Wolters Kluwer is a Dutch global information service company that is engaged in supporting professionals in the legal, business, tax, accounting, finance, audit, risk, compliance, and healthcare market. Four divisions provide information, software, and services: Legal & Regulatory Tax & Accounting, Health, and Governance, Risk & Compliance (the last service being NOT including in the results for the Global Ranking 2018) serving customers in over 180 countries and mantains operations in more than 40 countries worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands, and stock-listed on Euronext Amsterdam.

Analysis & Key Developments

Financial

Wolters Kluwer’s group revenues for 2017 were valued at 4,422mEUR, up 3% in organic revenue growth and 5% in constant currencies, compared to the results in 2016. Adjusted operating profit grew 6% overall and 8% in constant currencies to 1,009mEUR. (AR 2017)

• Revenues of the Legal & Regulatory segment declined by 10mEUR to 917mEUR during 2017, due to several disposals completed in the last two years and offset by the full-year inclusion of Enablon, a provider of Sustainability, EH&S and Operational Risk Management Software (acquired in July 2016). Adjusted operating profit stayed almost flat at 110mEUR compared to 111mEUR in 2016. (AR 2017) 
• Wolters Kluwer’s Tax & Accounting revenues increased 10% in constant currencies from 1,162mEUR in 2016 to 1,257mEUR in 2017. As expected by the company print formats, bank products, and services revenues declined and the adjusted operating profit margin was broadly stable, with 27% in 2017.
• Revenues of the Health division increased again, up 8% in constant currencies, from 1,106mEUR to 1,168mEUR. Clinical Solutions grew 10% organically and now exceeds 50% of the divisional revenues. Meanwhile, Margin increased, primarily driven by efficiency measures and mix shift. (AR 2017)
• Revenues of the in 2015 formed Governance, Risk & Compliance division – which is NOT included in the 2017 Global Ranking revenue – totaled in 2017 1,080mEUR against 1,091mEUR in the previous year, although revenues in constant currencies increased by 1% reflecting two divestments. (AR 2017)

Internal organization

In 2015 Wolters Kluwer restructured itself by expanding the Finance, Risk & Compliance division into the Governance, Risk & Compliance division. The newly introduced division includes Finance, Risk & Compliance, Transport Services, as well as synergies from the integration of Datacert and Tymetrix.

In January 2016 Wolters Kluwer Tax & Accounting announced the formation of a new customer-focused organization for North America. Jason Marx has been appointed CEO of the new North American unit, The new Tax & Accounting North America unit combines all tax and accounting software businesses in North America, and is organized by customer segment, including Small Firm Professionals, Medium and Large Firm Professionals, and Corporations. (PR 06.01.2016)

Acquisitions

• Since February 2016 Wolters Kluwer repurchases its own ordinary shares, as part of a three-year share buyback program (2016-2018). This buyback program includes repurchases made to offset annual incentive share issuance. The cumulative shares repurchased under this three-year program will be 16,751,020 with a consideration of 632,1mEUR (37,74EUR average share price). (PR 05.04.2018)
• In April 2017 the Wolters Kluwer’s Tax & Accounting division completed the purchase of Tagetik, a provider of cloud financial and strategic CPM solutions. (PR 06.04.2017)
• In September 2017, the company’s Tax & Accounting completed the acquisition of Adsolut, a provider of collaborative tax and accounting solutions for tax advisors and their clients in Belgium. (PR 01.09.2017)

Divestment

• In January 2018 Wolters Kluwer signed an agreement to divest ProVation Medical, a provider of clinical knowledge and software for the healthcare sector. (AR 2017)
• Also in January 2018, the company completed the divestment of certain Swedish Assets to Karnov Group, a provider of legal and tax & accounting information to businesses and professionals in Denmark and Sweden (PR 04.01.2018)
• In November 2017, Wolters Kluwer Legal & Regulatory sold its joint venture in Ipsoa Francis Lefebvre, an Italian publishing joint venture. (AR 2017)
• Moreover, Wolters Kluwer Governance, Risk & Compliance announced in October 2011 the divestment of Corsearch, its trademark solutions business to Audax Private Equity for 140mUSD in cash. (PR 23.11.2017)
• In September 2017, Wolters Kluwer Legal & Regulatory announced the divestment of certain UK information and publishing assets to the Peninsula Business Services Group for 9mEUR, while continuing to serve its UK customers for legal & regulatory software and international legal information. (AR 2017)
• In June 2017, Wolters Kluwer Governance, Risk & Compliance completed the divestment of its Transport Services unit, for a consideration of 83mEUR. (AR 2017)

International

In 2017 the corporation’s revenues were generated in the following regions: The Netherlands 170mEUR, Europe (excluding the Netherlands) 1,198mEUR, North Amerika 2,710mEUR, Asia Pacific 257mEUR and the rest of the world achieved 87mEUR. (AR 2017)

Digital

During the year 2017 76% of the company’s revenues, up from 74% in 2016, came from digital media. Wolters Kluwer’s total digital revenues reached 3,362mEUR in 2017, compared to 3,153mEUR in 2016. (AR 2017)