Clarivate, a provider of scientific, patent, and pharmaceutical and biotechnology business intelligence, has signed a definitive agreement to combine with CPA Global, a Jersey, UK-headquartered company that provides intellectual property (IP) software and technology-enabled services, in a $6.8-billion deal.

In the all-stock transaction, CPA Global shareholders will receive approximately 218 million Clarivate ordinary shares, representing 35% pro forma fully diluted ownership of Clarivate. Based on the 30-day volume weighted average share price of Clarivate (as reported with the merger announcement on July 29, 2020), the implied enterprise value is approximately $6.8 billion, which includes approximately $900 million of the present value of tax assets. The transaction, which is subject to customary closing conditions, including regulatory approvals, is expected to close in the fourth quarter of 2020.

CPA Global provides IP management and technology solutions to more than 12,000 law firm and corporate customers. CPA Global and Clarivate will form an end-to-end service that covers the innovation and IP lifecycle, from scientific and academic research to IP portfolio management and protection.

The proposed combination will build on complementary product and innovation strengths currently held by the two companies: geographically, the strength of CPA Global in Europe, and Clarivate in North America and Asia; and in product offerings, CPA Global strengths in IP software and technology-enabled services and Clarivate’s strengths in content, trademarks, and domains.

Upon closing, CPA Global’s majority owner, Leonard Green & Partners, will have the right to appoint two directors to the Clarivate board, which is expected to increase the Clarivate board from 11 to 13 members.

Source: Clarivate and CPA Global