Clarivate to sell Life Sciences & Healthcare business for $600m
Clarivate has announced that it has entered into a definitive agreement to sell its Life Sciences & Healthcare (LS&H) business to healthcare-focused investment firm Altaris for $600 million.
The transaction marks a significant strategic shift for Clarivate, leaving the company focused on its Academia & Government (A&G) and Intellectual Property (IP) businesses. Following completion of the deal, Clarivate said it will operate as a subscription-first provider of intelligence solutions, workflow software and technology-enabled services across those two segments.
According to the company, the A&G and IP divisions benefit from shared technology platforms and content assets, while serving customers through research, education, library and intellectual property solutions.
Matti Shem Tov, chief executive officer of Clarivate, said: “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.”
Clarivate said the sale will also strengthen its financial position by accelerating debt reduction and simplifying its portfolio.
Jonathan Collins, executive vice president and chief financial officer of Clarivate, said: “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.”
The LS&H business provides data, analytics and expertise supporting pharmaceutical and medical device companies throughout the drug and device lifecycle, from research and development through to commercialisation and market access.
Henry Levy, president of Life Sciences & Healthcare at Clarivate, said: “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.”
Under the terms of the agreement, Clarivate will receive $500 million in cash on completion of the transaction, with a further $25 million payable following completion of a transition services agreement and a $75 million seller note.
The company said it intends to use the cash proceeds to reduce debt and strengthen its balance sheet. The transaction is expected to close before the end of 2026, subject to customary regulatory approvals and other closing conditions.