ProQuest, based in Ann Arbor, is to be acquired for a value of $ 5.3 billion
According to a press release on Monday morning, the Ann Arbor software company ProQuest LLC is to be acquired by the British technology company Clarivate PLC for a value of 5.3 billion US dollars.
Clarivate (NYSE: CLVT) announced that it will acquire ProQuest from private investment firm Cambridge Information Group under a contract that the news release says will close in the third quarter of this year, pending regulatory approvals.
The deal, which includes $ 4 billion in cash and $ 1.3 billion in equity, would add more than $ 875 million to Clarviate’s balance sheet, the company said in the press release.
Crain estimated in July 2020 that there were approximately 570 full-time ProQuest employees in Southeast Michigan. It wasn’t clear what impact the deal could have on ProQuest’s presence in Ann Arbor.
Upon completion of the transaction, ProQuest chairman Andy Snyder, who also serves as CEO of Cambridge Information Group, will become vice chairman of the Clarivate board of directors. In addition, Michael Angelakis, Chairman and CEO of Cambridge Information Partner Atairos, will join the Clarivate board of directors.
“I have seen ProQuest evolve to meet the ever-changing needs of our customers over the past few decades, and I fully understand that the challenges and opportunities they face have never been greater,” said Snyder in the press release. “I am confident that the company will continue to have the resources necessary to sustain the impressive track record of innovation that our customers are counting on – to create a world-leading research and innovation organization.”
ProQuest has a large number of global offices and provides software, data and analysis for academic, research and national institutions. It was acquired by the Cambridge Information Group in 2007 for $ 222 million.
“Clarivate and ProQuest are very complementary companies with a rich and historic legacy,” said Jerre Stead, Executive Chairman and CEO of Clarivate, in the press release. “We share the goal of accelerating innovation through research and knowledge sharing, and together we enable our customers to solve the world’s most complex challenges with content spanning centuries and technologies tailored to the needs of customers of the 21st century.”
At Clarivate, with a total market cap of roughly $ 17.8 billion, stock trading rose more than 2 percent on Monday morning, with stock trading trading at more than $ 29.