Leonard Green-backed CPA merges with Clarivate in $6.8bn deal

CPA shareholders will secure a 35% ownership position in Clarivate as part of the deal, which gives CPA an enterprise value of approximately $6.8bn.

Certain CPA shareholders, including Leonard Green & Partners, Castik Capital and Partners Group, will be locked-up from selling their Clarivate shares until 1 October 2021.

The combined group expects to achieve cost synergies of approximately $75m within the first 18 months after the transaction closes. Clarivate is currently anticipating adjusted revenues of $1.13-1.16bn and adjusted EBITDA of $395-420m for 2020.

Leonard Green & Partners will have the right to appoint two directors to the Clarivate board.

Previous funding
Cinven acquired CPA from ICG and Epiris (then Electra Partners) in January 2012 in a secondary buyout reportedly worth around $1bn.

Leonard Green & Partners acquired CPA from Cinven in August 2017 in a £2.4bn deal.

Company
Founded in 1969 and headquartered in St Helier, Jersey, CPA provides software, services, and data analytics to the intellectual property sector. For 2019, CPA generated revenue of $564m and adjusted EBITDA of $262m.

People
CPA Global - Simon Webster (CEO).
Clarivate - Jerre Stead (executive chair, CEO).

Advisers
Acquirer - Goldman Sachs (corporate finance); Latham & Watkins (legal).
Company – Evercore (corporate finance); Davis Polk & Wardwell (legal); DC Advisory (debt advisory).

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