Proceeds from the deal will be used to cut debt as Clarivate shifts to a subscription-focused business model.
Clarivate PLC (CLVT) agreed to divest its Life Sciences & Healthcare segment to private equity firm Altaris for $600 million. The transaction aims to streamline operations and reduce leverage, positioning Clarivate as a subscription-first provider of technology-enabled services and intelligence solutions.
The $600 million consideration includes $500 million in cash, a $75 million seller note, and $25 million in deferred cash tied to transition services. Clarivate plans to allocate proceeds toward debt reduction, addressing financial obligations ahead of the deal’s completion.
Shares of CLVT saw limited immediate reaction following the announcement. Earlier this week, Barclays raised its price target on the stock to $2.50 from $2.40 but maintained an Underweight rating.