Wolters Kluwer to divest its Finance, Risk and Regulatory Reporting unit
Rhea-AI Summary
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.
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
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
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.
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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
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.
| Media | Investors/Analysts |
| Stefan Kloet | Meg Geldens |
| Wolters Kluwer Global Communications | Wolters Kluwer Investor Relations |
| m +316 12 22 36 57 | ir@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.
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