Clarivate Analytics announces $4.2 billion merger deal

Public investment vehicle Churchill Capital Corp and Clarivate Analytics have announced a definitive agreement to merge, with the combined company – Clarivate – to become publicly listed on the New York Stock Exchange. The transaction, which implies an initial enterprise value of approximately $4.2 billion, is expected to complete during the second quarter of 2019.

In 2016 Thomson Reuters sold its IP services business to Hong Kong-based Baring Asia (BPEA) and Canada’s Onex Corporation for a reported $3.55 billion, with Clarivate Analytics the company under which Compumark and MarkMonitor were subsequently positioned. A number of acquisitions followed, including the purchase of Australian artificial intelligence technology company TrademarkVision.

In announcing plans for the merger between Churchill Capital Corp and Clarivate Analytics, it was revealed that Onex, BPEA and Clarivate management are to retain 100% of their equity (which converts to 73.8% ownership of the outstanding shares of the combined company at closing). The remaining outstanding shares of the combined company will be held by the current stockholders and founders of Churchill, with the latter agreeing to invest an additional $15 million in the company.

Churchill CEO Jerre Stead will serve as executive chairman of the combined company, with Clarivate’s existing management team – led by CEO Jay Nadler and chief financial officer Richard Hanks – continuing to lead the business. Nadler commented: “This is an exciting milestone in Clarivate’s evolution that will open a wide range of future growth opportunities for the business and allow us to further invest in the brightest minds, game changing data science, and robust technologies.”