Wolters Kluwer to Acquire Emmi
Extends Wolters Kluwer Clinical Solutions into fast-growing patient engagement market
October 4, 2016 - Wolters Kluwer Health announced today that it has signed an agreement to acquire Emmi Solutions (Emmi), one of the leading U.S. providers of patient engagement solutions, for $170 million in cash.
Founded in 2002, Emmi is a leading provider of comprehensive and interactive patient engagement solutions supporting healthcare providers and insurance carriers in delivering effective healthcare. Patient engagement solutions encourage patients to more actively participate in their healthcare, thereby improving outcomes and potentially reducing healthcare costs. Emmi's offerings are a natural extension to our existing Clinical Solutions portfolio, in particular to UpToDate in decision support and Lexicomp and Medi-Span in drug information.
Emmi offers an enterprise-wide, integrated, and multi-media patient engagement platform with high quality, peer-reviewed content and personalized communications that span the spectrum of care from prevention, to treatment, to patient follow-up. The company's solutions are highly rated for ease of integration with electronic medical records (EMR) systems, technical capabilities, and overall user experience.
The U.S. market for patient engagement solutions is expected to grow at a double-digit rate in coming years, driven by the ongoing shift from a 'pay for service' to a 'pay for outcome' reimbursement model. Emmi's revenues are expected to reach approximately $29 million in 2016, driven by increasing penetration and product innovation. Over 90% of revenues are subscription-based and over 95% is derived from the U.S. market. The acquisition is expected to deliver a return on invested capital above Wolters Kluwer's after tax cost of capital (8%) in 3 to 5 years and is expected to be enhancing to adjusted earnings in the first full year. Completion of the transaction is subject to Hart-Scott-Rodino regulatory review and other customary closing conditions.
"Healthcare systems are striving to deliver consistent, safe, high-quality care while the economics of healthcare are increasingly demanding value in healthcare delivery. Patients who engage in their care have the potential to make better decisions and achieve improved health outcomes. We are pleased to add this state-of-the-art patient engagement product to our range of clinical solutions. Combining Emmi's products with our UpToDate and drug information offerings, we can now uniquely provide healthcare systems and their patients a consistent, high quality, evidence based solution that spans the entire continuum of care," said Diana Nole, CEO Wolters Kluwer Health.
About Wolters Kluwer
Wolters Kluwer N.V. (AEX: WKL) is a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services.
Wolters Kluwer reported 2015 annual revenues of €4.2 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide.
Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).
Wolters Kluwer Health is a leading global provider of information and point of care solutions for the healthcare industry. For more information about our products and organization, visit http://www.wolterskluwer.com/, follow @WKHealth or @Wolters_Kluwer on Twitter, like us on Facebook, follow us on LinkedIn, or follow WoltersKluwerComms on YouTube.
About Emmi
Emmi® delivers interactive patient engagement solutions by combining an intimate understanding of people with expertise in behavioral and educational science. Emmi's integrated, web-based programs and automated call campaigns, expertly designed through a rigorous development process and a human-centered approach, provide a scalable way for healthcare organizations to engage individuals to be participants and partners in their care, while improving operational and financial performance. Emmi creates empowered people, improved relationships and healthier populations. For more information, visit emmisolutions.com, or follow the company on Twitter,LinkedIn, and Facebook.
Analysts/Investors Contact:
Meg Geldens
Vice President, Investor Relations
Wolters Kluwer
+31 172 641 407
ir@wolterskluwer.com
Media Contacts:
Annemarije Pikaar
Senior Manager, External Communications
Wolters Kluwer Global Corporate Communications
+31 172 641 470
annemarije.pikaar@wolterskluwer.com
Cheri Palmer
Vice President, Communications
Clinical Effectiveness, Health
Tel: +1 781 392 2921
cheri.palmer@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; 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.
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