CLVT · Clarivate Plc

Clarivate Plc has entered into a definitive agreement to sell its Life Sciences & Healthcare (LS&H) segment to an affiliate of Altaris LLC, an investment firm focused on healthcare, for a total consideration of $600 million. The consideration includes $500 million in cash at closing, $25 million in deferred cash tied to transition services, and a $75 million seller note. The transaction is expected to close by the end of 2026, subject to customary regulatory approvals and conditions.

This divestiture aligns with Clarivate's Value Creation Plan, which aims to optimize the business model, improve sales execution, accelerate innovation, and rationalize the portfolio. Post-close, Clarivate will concentrate on its Academia & Government (A&G) and Intellectual Property (IP) segments, which management believes offer complementary subscription-based revenue streams and stronger margins. The company expects the sale to enhance its financial profile by improving revenue mix, expanding Adjusted EBITDA margin, and lowering capital intensity. Proceeds from the sale will be used to reduce debt, specifically targeting the 2028 and 2029 notes, thereby strengthening the balance sheet and increasing financial flexibility.

Clarivate reaffirmed its full-year 2026 financial outlook, which includes LS&H segment results for the full year. The segment will be classified as discontinued operations starting in Q3 2026. The company expects to record a non-cash goodwill impairment of approximately $225 to $250 million on the LS&H segment based on the sales price, which will not affect the financial outlook metrics. The press release also provides detailed reconciliations of non-GAAP measures such as Adjusted EBITDA, Adjusted Diluted EPS, and Free Cash Flow. Management will host a conference call to discuss the transaction.