Founded in 1836, Wolters Kluwer is a Dutch global information service company dedicated to professionals in the legal, business, tax, accounting, finance, audit, risk, compliance, and healthcare markets. Four divisions provide information, software, and services: Legal & Regulatory, Tax & Accounting, Health, and Financial & Compliance Services. The company operates in over 150 countries.
Key Company Developments in 2012 & 2013
Wolters Kluwer closed 2012 with a revenue growth of 2% at constant currencies to 3.60 billion EUR supported by online, software, and other services, which were up 4% organically and now comprise 74% of total revenues. Revenue declines in Europe were offset by growth in North America (4%) and in Asia (8%). Wolters Kluwer completed a share buy-back of 135 million EUR. Growth could be achieved across all segments surveyed.
The organic growth achieved in North America was driven by corporate Legal Services in the Legal & Regulatory business, while declines in Europe (6%) came from print products.
The Health business’s revenues increased 8% in constant currencies to 745 million EUR, while ordinary EBITA grew 19% in constant currencies to 163 million EUR. Clinical Solutions cover 38% of divisional revenues and maintains double-digit organic growth. In the Financial & Compliance Service, both revenues and ordinary EBITA experienced a 9% increase in constant currencies fueled by new and expanded customer contracts in finance, originations and audit.
The Tax & Accounting business saw solid growth accounting for 981 million EUR from 931 million EUR.
Ownership, Mergers & Acquisition, Internal Organization:
in 2012 Wolters Kluwer acquired Acclipse, which offers online accounting software to customers in Asia Pacific, and FinArch, a global provider of integrated finance and risk solutions.
In January 2013, Wolters Kluwer Health completed the acquisition of Health Language, a leader in medical terminology management.
From 2003 to 2012 revenues from Asia Pacific and the rest of the world doubled from 3% to 6%. Additional growth potential is expected in fast-growing markets such as China and India.
Approximately 74% of revenues come from online, software and services, including 350 mobile apps and 100 e-journals. The share of revenues generated by print products Wolters Kluwer since initated its transformation process has fallen from 55% to 26% in 2012. With 59% of its revenues generated through online sales, the Health sector features the greatest share of revenues from digital.
Under the terms of a strategy to focus on professional information and clinical decision support solutions, “one of the fastest growing areas of Health," according to CEO Nancy McKinstry, Wolters Kluwer announced in July 2011 to divest its Pharma Solutions Business. The sale of the pharmaceutical-related Marketing and Publishing Services (MPS) was completed by November 2001, when an agreement with Springer Science+Business Media was signed. The divestment represents approximately 35% of the company’s pharmaceutical-related assets in terms of revenue. MPS is one of the five market-leading global content providers, with scientific journals, databases, and other services. Healthcare Analytics is undergoing sale.