STOCK TITAN

Wolters Kluwer to divest its Finance, Risk and Regulatory Reporting unit

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags

Wolters Kluwer (OTC:WTKWY) has announced the sale of its Finance, Risk and Regulatory Reporting (FRR) unit to Regnology Group GmbH for €450 million. The FRR unit, which generated revenues of €123 million in 2024 (approximately 10% of FCC division revenues), will be acquired by Regnology to strengthen its global regulatory and risk reporting solutions.

The transaction is expected to complete in fall 2025, subject to regulatory approval and employee consultations. The divestment will enable Wolters Kluwer's Financial & Corporate Compliance division to focus on its U.S. banking compliance and corporate legal services. The company anticipates recording a capital gain upon completion.

Wolters Kluwer (OTC:WTKWY) ha annunciato la vendita della sua unità Finance, Risk and Regulatory Reporting (FRR) a Regnology Group GmbH per 450 milioni di €. L'unità FRR, che ha generato ricavi per 123 milioni di € nel 2024 (circa il 10% dei ricavi della divisione FCC), sarà acquisita da Regnology per rafforzare le sue soluzioni globali di reporting regolamentare e di rischio.

La transazione è prevista per il autunno 2025, subordinata all'approvazione regolamentare e alle consultazioni con i dipendenti. La cessione permetterà alla divisione Financial & Corporate Compliance di Wolters Kluwer di concentrarsi sulla conformità bancaria negli Stati Uniti e sui servizi legali aziendali. L'azienda prevede di registrare una plusvalenza al completamento dell'operazione.

Wolters Kluwer (OTC:WTKWY) ha anunciado la venta de su unidad Finance, Risk and Regulatory Reporting (FRR) a Regnology Group GmbH por 450 millones de €. La unidad FRR, que generó ingresos de 123 millones de € en 2024 (aproximadamente el 10% de los ingresos de la división FCC), será adquirida por Regnology para fortalecer sus soluciones globales de informes regulatorios y de riesgo.

Se espera que la transacción se complete en el otoño de 2025, sujeta a la aprobación regulatoria y consultas con los empleados. La desinversión permitirá que la división Financial & Corporate Compliance de Wolters Kluwer se enfoque en el cumplimiento bancario en EE. UU. y en servicios legales corporativos. La compañía anticipa registrar una ganancia de capital al concluir la operación.

Wolters Kluwer (OTC:WTKWY)는 자사의 금융, 리스크 및 규제 보고(FRR) 부문을 Regnology Group GmbH에 4억 5천만 유로에 매각한다고 발표했습니다. FRR 부문은 2024년에 1억 2,300만 유로의 매출(FCC 부문 매출의 약 10%)을 기록했으며, Regnology는 전 세계 규제 및 리스크 보고 솔루션 강화를 위해 이를 인수할 예정입니다.

이번 거래는 규제 승인과 직원 협의가 완료되는 것을 조건으로 2025년 가을에 완료될 예정입니다. 이번 매각으로 Wolters Kluwer의 금융 및 기업 컴플라이언스 부문은 미국 은행 컴플라이언스와 기업 법률 서비스에 집중할 수 있게 됩니다. 회사는 거래 완료 시 자본 이익을 기록할 것으로 예상합니다.

Wolters Kluwer (OTC:WTKWY) a annoncé la vente de son unité Finance, Risk and Regulatory Reporting (FRR) à Regnology Group GmbH pour 450 millions d'euros. L'unité FRR, qui a généré 123 millions d'euros de revenus en 2024 (environ 10 % des revenus de la division FCC), sera acquise par Regnology afin de renforcer ses solutions mondiales de reporting réglementaire et de gestion des risques.

La transaction devrait être finalisée à l'automne 2025, sous réserve de l'approbation réglementaire et des consultations avec les employés. Cette cession permettra à la division Financial & Corporate Compliance de Wolters Kluwer de se concentrer sur la conformité bancaire aux États-Unis et les services juridiques aux entreprises. L'entreprise prévoit de réaliser une plus-value à la clôture de l'opération.

Wolters Kluwer (OTC:WTKWY) hat den Verkauf seiner Einheit Finance, Risk and Regulatory Reporting (FRR) an die Regnology Group GmbH für 450 Millionen Euro bekannt gegeben. Die FRR-Einheit, die im Jahr 2024 Umsätze von 123 Millionen Euro erzielte (etwa 10 % der Umsätze der FCC-Division), wird von Regnology übernommen, um deren globale Lösungen für regulatorische und Risiko-Berichterstattung zu stärken.

Der Abschluss der Transaktion wird für Herbst 2025 erwartet, vorbehaltlich der behördlichen Genehmigung und der Mitarbeiterkonsultationen. Der Verkauf ermöglicht es der Financial & Corporate Compliance-Division von Wolters Kluwer, sich auf die US-amerikanische Bank-Compliance und Unternehmensrechtsdienstleistungen zu konzentrieren. Das Unternehmen erwartet, beim Abschluss einen Kapitalgewinn zu verbuchen.

Positive
  • Strategic divestment allowing focus on core U.S. banking compliance and corporate legal services
  • Expected capital gain from €450 million transaction
  • Deal represents approximately 3.7x revenue multiple based on 2024 figures
Negative
  • Loss of €123 million revenue stream (10% of FCC division revenues)
  • Divesting unit had invested significantly in platform development, impacting margins

PRESS RELEASE

Wolters Kluwer to divest its Finance, Risk and Regulatory Reporting unit

Alphen aan den Rijn – July 21, 2025 – Wolters Kluwer Financial & Corporate Compliance (FCC) announces today that it has signed a binding agreement to sell its Finance, Risk and Regulatory Reporting (FRR) unit to Regnology Group GmbH (Regnology) for an enterprise value of approximately €450 million, subject to closing conditions and contractual adjustments.

The planned divestment will allow FCC to concentrate its efforts and investments on developing its existing positions in U.S. banking compliance and corporate legal and compliance services.

Lisa Nelson, CEO of Wolters Kluwer Financial & Corporate Compliance, said: “With over 30 years’ of experience in supporting large banks with a broad range of technology solutions, Regnology is an excellent home for FRR as it continues to build out its integrated regulatory and risk solutions to support ever-more complex and granular data reporting.”

Rob Mackay, CEO of Regnology, said: “I am pleased to welcome the FRR team to Regnology. Their deep domain expertise and established presence across key markets will significantly strengthen our ability to serve financial institutions globally. This acquisition allows us to expand into new territories and accelerate our vision of delivering unified regulatory, risk, and finance reporting solutions. I look forward to building on FRR’s strengths and unlocking new opportunities for clients and employees alike.”

In 2024, FRR generated revenues of €123 million (approximately 10% of FCC division 2024 revenues1) with margins reflecting significant investment in its platform to support Basel and other new regulatory reporting requirements. The transaction, which is subject to regulatory approval and employee consultations, is expected to be completed in the fall 2025. Wolters Kluwer expects to record a (non-benchmark) capital gain upon completion. The use of net after-tax proceeds from the divestment will be determined after closing. The entities to be divested will continue to be consolidated with FCC until completion.

1 Pro forma for the transfer, as of January 1, 2025, of the Finance, Risk & Reporting (FRR) unit from the Wolters Kluwer Corporate Performance & ESG division to the Wolters Kluwer Financial & Corporate Compliance (FCC) division.

###

About Wolters Kluwer
Wolters Kluwer (EURONEXT: WKL) is a global leader in information solutions, software, and services for professionals in healthcare; tax and accounting; financial and corporate compliance; legal and regulatory; corporate performance and ESG. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with technology and services.

Wolters Kluwer reported 2024 annual revenues of €5.9 billion. The group serves customers in over 180 countries, maintains operations in over 40 countries, and employs approximately 21,900 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.

Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX, Euro Stoxx 50 and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt (ADR) program. The ADRs are traded on the over-the-counter market in the
U.S. (WTKWY).

For more information, visit www.wolterskluwer.com, follow us on LinkedIn, Facebook, YouTube and Instagram.

MediaInvestors/Analysts
Stefan KloetMeg Geldens
Wolters Kluwer
Global Communications
Wolters Kluwer
Investor Relations
m +316 12 22 36 57ir@wolterskluwer.com

stefan.kloet@wolterskluwer.com

Forward-looking Statements and Other Important Legal Information
This report contains forward-looking statements. These statements may be identified by words such as “expect”, “should”, “could”, “shall” and similar expressions. Wolters Kluwer cautions that such forward-looking statements are qualified by certain risks and uncertainties that could cause actual results and events to differ materially from what is contemplated by the forward-looking
statements. Factors which could cause actual results to differ from these forward-looking statements may include, without limitation, general economic conditions; conditions in the
markets in which Wolters Kluwer is engaged; conditions created by any pandemics; behavior of customers, suppliers, and competitors; technological developments; the implementation and execution of new ICT systems or outsourcing; and legal, tax, and regulatory rules affecting Wolters Kluwer’s businesses, as well as risks related to mergers, acquisitions, and divestments. In addition, financial risks such as currency movements, interest rate fluctuations, liquidity, and credit risks could influence future results. The foregoing list of factors should not be construed as exhaustive. Wolters Kluwer disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Trademarks referenced are owned by Wolters Kluwer N.V. and its subsidiaries and may be registered in various countries.

Attachment


FAQ

How much is Wolters Kluwer selling its FRR unit for?

Wolters Kluwer is selling its Finance, Risk and Regulatory Reporting unit to Regnology Group for €450 million, subject to closing conditions and contractual adjustments.

When will the Wolters Kluwer FRR unit sale be completed?

The transaction is expected to be completed in fall 2025, pending regulatory approval and employee consultations.

How much revenue did Wolters Kluwer's FRR unit generate in 2024?

The FRR unit generated €123 million in revenue in 2024, representing approximately 10% of the FCC division's revenues.

What will Wolters Kluwer do with the proceeds from the FRR unit sale?

The use of net after-tax proceeds from the divestment will be determined after closing. The company expects to record a capital gain upon completion.

Why is Wolters Kluwer selling its FRR unit?

The divestment will allow Wolters Kluwer's Financial & Corporate Compliance division to concentrate efforts and investments on U.S. banking compliance and corporate legal and compliance services.
Wolters Kluwer N V

OTC:WTKWY

WTKWY Rankings

WTKWY Latest News

WTKWY Stock Data

36.08B
234.37M
0.04%
Specialty Business Services
Industrials
Link
Netherlands
Alphen aan den Rijn