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Clarivate to Acquire ProQuest for $5.3 Billion

Clarivate says it expects to close its acquisition of ProQuest in the third quarter.
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Information technology company Clarivate Analytics  (CLVT) - Get Clarivate Plc Report said Monday it agreed to acquire the analytics company ProQuest from Cambridge Information Group for $5.3 billion.

Shares of the U.K.-based Clarivate were rising 1.65% to $28.95 on Monday.

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The transaction, consisting of $4 billion in cash and $1.3 billion in equity, is expected to close during the third quarter. Clarivate said the transaction will add more than $875 million in revenue to its balance sheet.

Clarivate said it secured a backstop consisting of a $4 billion fully committed bridge facility from Citigroup and Goldman Sachs and intends to obtain long-term financing from debt and equity markets before the closing of the transaction.

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Once the deal closes, ProQuest Chairman Andy Snyder, who also serves as CEO of Cambridge Information Group, will become vice chairman of the Clarivate board.

Michael Angelakis, chairman and CEO of Cambridge Information partner firm Atairos, will join the Clarivate board.

Clarivate said the deal is expected to be double-digit accretive to earnings in 2022 and mid-teens accretive in 2023.

ProQuest, which is headquarter in Ann Arbor, Mich., has about 2,133 employees. The company was acquired by Cambridge Information Group in 2007.

"Clarivate and ProQuest are highly complementary businesses, each with a rich and storied heritage," Jerre Stead, Clarivate's executive chairman and CEO, said in statement. 

The two companies, Stead added, "share the goal to accelerate innovation through research and knowledge sharing and together we will enable our customers to solve the world's most complex challenges with content dating back centuries, and technologies that address the needs of 21st century customers."