Clarivate to Sell Life Sciences Unit to Altaris for $600M, Refocus Core Business

Clarivate will sell substantially all of its Life Sciences & Healthcare segment to Altaris for $600 million , with the deal expected to close by year-end pending regulatory approval.

The company plans to use the proceeds to retire debt , which it expects will reduce net leverage by about 1.5x over the next few years and help support strong free cash flow.

After the divestiture, Clarivate will focus on its Academia & Government and Intellectual Property businesses, which management says generate most of its profit and free cash flow and should improve margins and recurring revenue mix.

Clarivate NYSE: CLVT said it has reached an agreement to sell substantially all of its Life Sciences & Healthcare segment to Altaris, an investment firm focused on the healthcare industry, in a transaction valued at $600 million.

Chief Executive Officer Matti Shem Tov said on a conference call that the deal is expected to close by year-end, subject to customary regulatory approvals and closing conditions.

He described the divestiture as a “major strategic step forward” for Clarivate, saying it would sharpen the company’s focus on its remaining Academia & Government and Intellectual Property segments.

“We will sharpen our focus, improve the quality of the business, and position Clarivate for stronger long-term value creation,” Shem Tov said.

Chief Financial Officer Jonathan Collins said the total consideration includes $525 million in cash and a $75 million seller note.

He said the valuation represents just over 10 times the segment’s adjusted EBITDA less capital spending, wh...