Private equity giants Clayton, Dubilier & Rice (CD&R) and Nordic Capital are among the firms weighing potential bids for Clarivate’s intellectual property (IP) unit, according to a report by Reuters citing unnamed sources familiar with the matter.
Clarivate, headquartered in London and listed on the New York Stock Exchange, announced earlier this year that it was exploring strategic alternatives, including asset sales, to enhance shareholder value. The company has engaged Morgan Stanley and Moelis & Company to advise on the process.
According the sources, Clarivate has been in discussions with interested parties and invited bids for its IP unit last month. Both CD&R and Nordic Capital submitted expressions of interest, although no transaction is guaranteed. Sources noted that Clarivate may pivot toward other divestitures should bids for the IP business fall short of expectations.
Clarivate, which has seen its shares drop roughly 90% since their 2021 peak amid organic growth and client retention challenges, is reportedly seeking a valuation north of $4bn for the IP division. Some potential bidders, however, believe the asset may command a lower price.
In 2024, Clarivate reported revenues of $2.56bn, down from $2.63bn the previous year, while group EBITDA slipped to $1bn from $1.12bn. EBITDA from the IP unit alone declined by 10.5% year-on-year to $358m, largely due to lower subscription revenue and reduced renewal volumes.
Nordic Capital is said to be considering acquiring the unit through Anaqua, its IP management software portfolio company, which it purchased in November for $2.5bn. Anaqua has not commented on the reports.
Clarivate’s IP assets, which include CPA Global and the Derwent World Patents Index (DWPI), serve corporate and legal clients with a suite of software and services for managing patents, trademarks, and contracts. Clarivate combined with CPA Global in a $6.8bn deal in 2020.
Clarivate’s largest shareholder is Leonard Green & Partners, holding a 16.9% stake, followed by Clarkston Capital Partners (10%) and Italy’s Agnelli family (9.7%), according to LSEG data.
Spokespeople for Clarivate, CD&R, and Nordic Capital declined to comment.
