Clarivate announced a definitive agreement to divest its Life Sciences & Healthcare segment to Altaris for $600 million. Altaris is an investment firm focused exclusively on acquiring and building companies in the healthcare industry.
The transaction is intended to sharpen Clarivate’s focus on its Academia & Government and Intellectual Property segments. Following the close, Clarivate said it will operate as a subscription-first global provider of intelligence solutions, workflow software, and tech-enabled services.
Clarivate said its remaining segments benefit from deep customer relationships, shared content assets, and common technology platforms. Its Academia & Government business provides research, education, and library solutions, while its Intellectual Property business offers data, software, and expertise for creating, managing, and protecting IP.
The divestiture is aligned with Clarivate’s Value Creation Plan, which is focused on optimizing the company’s business model, improving sales execution, accelerating innovation, and rationalizing its portfolio. Clarivate said the deal will improve efficiency, sharpen execution, strengthen innovation, and expand customer reach.
Under the terms of the agreement, Clarivate will receive $500 million in cash at closing. The company will also receive $25 million in cash deferred to the completion of a transition services agreement and a $75 million seller note.
Clarivate plans to use the cash proceeds to reduce debt. The company said the divestiture will enhance its financial profile by improving its revenue mix, lowering capital intensity, expanding adjusted EBITDA margin, and increasing financial flexibility.
The transaction is expected to close by the end of the year. The closing is subject to customary conditions, including regulatory approvals and the expiration of applicable waiting periods.
Clarivate also reaffirmed its full-year 2026 financial outlook, including Life Sciences & Healthcare segment results for the full year. The company said the segment will be classified as discontinued operations starting in the third quarter and that it expects to update its full-year outlook when the transaction closes.
Clarivate expects to record an approximately $225 million to $250 million non-cash goodwill impairment on the Life Sciences & Healthcare segment based on the agreed sales price. The company said the impairment will not affect the financial metrics in its full-year outlook.
Morgan Stanley is serving as financial advisor to Clarivate. Davis Polk & Wardwell and Hogan Lovells Cadwalader are serving as legal advisors, while Joele Frank is serving as strategic communications advisor.
KEY QUOTES:
“We are pleased to have reached this agreement, which is well-aligned with Clarivate’s four-pillared Value Creation Plan to optimize our business model, improve our sales execution, accelerate innovation and rationalize our portfolio, all with the goal of unlocking shareholder value. With the complementary nature of A&G’s and IP’s businesses, we will enhance efficiency, sharpen execution, strengthen innovation and grow customer reach. The Company will have a stronger financial profile and more focused portfolio, making it well positioned as a leader in the knowledge and innovation economy and poised to drive sustained value for shareholders, customers and employees.”
Matti Shem Tov, CEO of Clarivate
“This strategic divestiture strengthens Clarivate’s financial profile and accelerates our debt reduction plan. Moreover, monetizing the LS&H segment will enhance the quality of our revenue mix, lower capital intensity, and improve margins. The result is a streamlined Company with increased financial flexibility to support long-term growth and disciplined capital allocation.”
Jonathan Collins, Executive Vice President and CFO of Clarivate
“The LS&H segment integrates deep domain expertise, trusted data assets and strong analytical capabilities to support critical decision-making across the drug and device lifecycle, aiding customers from discovery to commercialization and market access. Under Altaris, the business will be well-positioned to build on its strong foundation and enter its next phase of growth, supported by continued investment and a strong focus on customer impact.”
Henry Levy, President of Life Sciences & Healthcare at Clarivate
