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Clarivate to Combine with CPA Global, Creating a World Leader in Intellectual Property Information and Services (July 29, 2020)

  • 01 Aug 2020 3:08 AM
    Message # 9138366

    Note: Below is  given a first part of Clativate July 29, 2020 press release, quotations from a supplemental presentation and a Conference call, a brief information on Clarivate Analytics Plc history, and selection from the company's SEC filings related patent data and analytics..

    Clarivate to Combine with CPA Global, Creating a World Leader in Intellectual Property Information and Services (July 29, 2020)

    London, UK, July 29, 2020 – Clarivate Plc (NYSE:CCC), a global leader in providing trusted information and insights to accelerate the pace of innovation, today announced that it has signed a definitive agreement to combine with CPA Global, a global leader in intellectual property (“IP”) software and tech-enabled services. In the all-stock transaction, CPA Global shareholders will receive approximately 218 million Clarivate ordinary shares, representing 35% pro forma fully diluted ownership of Clarivate. Based on the 30-day volume weighted average share price of Clarivate, the implied enterprise value is approximately $6.8 billion, which includes approximately $900 million of the present value of tax assets. The transaction, which is subject to customary closing conditions, including regulatory approvals, is expected to close fourth quarter of 2020.

    CPA Global provides IP management and technology solutions to more than 12,000 law firm and corporate customers, providing IP professionals with the information, insights and technology they need to manage the world’s intellectual property. Together, CPA Global and Clarivate will form a true end-to-end solution that covers the entire innovation and IP lifecycle – from scientific and academic research to IP portfolio management and protection. The proposed combination of market-leading intellectual property software, data, technology and services will provide customers with seamless access to richer content and broader capabilities as they execute on their innovation and IP strategies....

    For further details see a press-release and supplemental presentation for investors , both posted at Clarivate's Investor Relations website. Clarivate vision for transformation of IP management industry as result of Clarivate/CPA Global combination is illustrated by an attached slide from this presentation (at p.7)

    The Clarivate and CPA Global have made a combined Conference Call to their investors and associates, replay of which would be available until Aug. 12, 2020).  [In one question, Derwent has been mentioned. it has been noted that Derwent [has been] "really the best of class in terms of information" and "Derwent has such strong position in the patent attorneys and...and information has been already embeded in target base that much [of CPA clients]". Clarivate expects Derwent Innovation could cross over to CPA clients on commercial side of IP management which Clarivate does not have, [because] Clarivate has broad analytics program which could enhance their offering. [21:46-23:31].)

    Background information on Clarivate Analytics.

    Thomson Reuters IP and Science Business spin-off acquired by funds of Onex and Baring Asia has been renamed to Clarivate Analytics on Oct. 4, 2016. (see discussion on an intent such spin-off at piug-wiki in December 2015).  Clarivate completed merger with  Churchill Capital Corp a publicly traded investment vehicle and combined company have listed at NYSE from May 14, 2019 under name Clarivate Analytics Plc (NYSE: CCC, CCCWS). For early company history, written in its own words, see SEC Form F4 below.

    Below are selections from some company SEC filings (CIK#: 0001764046)  (and supplementary investor presentations) related to it IP business, particular Derwent products.

    7/30/2020 Q2 2020 – Supplemental Materials (26 p.)

    (p.3) Q2 Highlights
    Enhanced Product Portfolio: IP GROUP:
    Watch “lite” launched, client migration to new Derwent platform completed
    Derwent content expansion; added full text from 45 new jurisdictions

    5/4/2020 Q1 2020 – Supplemental Materials (25 p.)

    (p.3) Q1 Highlights
    Enhanced Product Portfolio: IP GROUP:
    Launched improved Derwent Patents database platform
    SequenceBase functionality integrated into Derwent

    Form 10-K Annual report [Section 13 and 15(d)]  2020-03-02  Commission File No. 001-38911

    (p.7) Pursue Acquisition Opportunities.  Given the fragmented nature of the broader information services industry, we track and, where appropriate, will continue to pursue opportunities across our product groups. From 2017 through 2019, we completed five small add-on acquisitions to augment our existing portfolio of assets and provide additional datasets and services for our customers. Our completed acquisitions include Publons and Kopernio in Science and TrademarkVision, SequenceBase and Darts-ip in IP. Certain of these acquisitions are fully integrated into our platform. while others continue to be integrated, and we believe they have already provided additional value to our customers.

    Positive Sector Dynamics Support Our Trajectory.  ....Customers of data and analytics products continue to approach complex business decisions in new ways. We believe that these customers are placing greater emphasis and value on the ability to embed predictive and prescriptive analytics into their decision-making processes. These customers are using smart data to anticipate what will happen in the future, as opposed to using historical data to study what has happened in the past. As such, we are investing in these critical, forward-facing products and solutions [Predictive and Prescriptive analytics.]

    p.8 Our Competitive Strengths.  Leading Market Positions in Attractive and Growing Global Markets.  ...We believe that our flagship products hold a #1 or #2 by revenue across the respective markets they serve, including abstracting and indexing databases, life science regulatory and competitive intelligence and intellectual property protection (including patent, trademarks and brand protection). We also believe that the outlook for growth in each of our Product Lines is compelling because of customer demand for curated high-quality data, underpinned by favorable end-market trends, such as rising global R&D spending, growing demand for information services in emerging markets, the acceleration of e-commerce and the increasing number of patent and trademark applications.  A Trusted Partner Delivering Highly Curated Content Embedded Within Customer Workflows.  ...Our content curation and editorial teams include over 930 employees, who clean, analyze and classify unstructured data to ensure high-quality content and an enhanced user experience. ...

    p.13  Derwent Innovation, our flagship DPL product, is used by R&D professionals and lawyers to monitor patent filings, search existing patents and analyze data to support R&D decision-making. It is a critical resource to help our customers secure patent protection and address litigation of patent infringement. The product is powered by Derwent World Patents Index, our proprietary database of over 80 million patent publications from 50 patent offices, which represented 98% of all patents published globally in 2018 and has been developed and curated for over 50 years. The database combines data science with our team of domain experts who correct, enrich and abstract over six million global patents per year in over 30 languages, as of December 31, 2019. We provide customers with easy-to-understand summaries of patent filings that are prepared by our domain experts, who index and translate the highly technical and intentionally obscure patent filings into understandable abstracts that provide insights into a patent’s novelty, use and advantage over prior patents

    p.136. Revenue by product groupThe following table summarizes revenue by product group (in thousands):

                                                                       2019                      2018       2017       
    Web of Science Product Line            $380,299                 $361,957       $352,995 
     Derwent Product Line   
                     $181,949                    $179,321     $ 176,201 

      

     11/5/2019 Q3 2019 – Supplemental Materials (29 p.)

    (p.4) Other achievements
    Completed the acquisition of SequenceBase
      Strengthening our patent offering and search technology to the fast growing biotech, pharmaceutical and chemical industries


    6/5/2019  Baird’s 2019 Global Consumer, Technology & Services Conference – Supplemental Materials (44 p.)

    (p.4) Clarivate: Vision/Mission/Value
    Vision Statement:  Delivering trusted insights to the world’s great innovators
    Mission Statement: We are on a bold, entrepreneurial mission to help the world’s risk takers and trailblazers transform new ideas into life-changing innovations. We do that by providing insights through data, analytics, technology and subject matter expertise
    (p.5) Clarivate: Business Overview
    •Leading global provider of comprehensive intellectual property and scientific information, analytical toolsand services

    •Products support the critical decisions made by universities, businesses, governments and law firms in the discovery, protection and commercialization of new and existing ideas and brands
    •Portfolio of curated proprietary databases that are deeply embedded into customers’ daily workflow
    Science Product Group
    Web of Science Used to navigate scientific and academic research discoveries, conduct analysis and evaluate research impact
    Cortellis Used by life sciences firms for drug research, market intelligence and regulatory compliance
    IP  Product Group
    Derwent Innovation Used to search and analyze patents
    CompuMarkWatch Used to monitor trademarks on an ongoing basis
    (p.24)  Clarivate Transformation: The Next Step
    Cost-Saving Initiatives
    Using artificial intelligence and the latest technologies to reduce costs and increase efficiencies for content sourcing and curation
    Moving work performed by contractors in-house to best-cost geographic locations

    (p.26)  Example Product Use CasesCustomers use Clarivate’s products in a variety of ways, including in the following “real world” examples:
    Key Products                    Use Case
    Derwent Innovation          An employee developing a new product or idea (e.g., a chemical engineer or a product designer) will access the Derwent Innovation database of patents to evaluate the novelty and determine the patentability of the new product or idea [highlighting in an original]
    (p.32) Product Example: Derwent Innovation (see an attached file)

     

    Form F-4 - Registration of securities... Filing Date 2019-02-27

    FORM F-4
    REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
    CLARIVATE ANALYTICS PLC

    (p.5) The Company.The Company is the leading global information services and analytics company serving the scientific research, intellectual property and life sciences end-markets. Corporations, government agencies, universities, law firms and other professional services organizations around the world depend on the Company’s high-value, curated content, analytics and services. Unstructured data has grown exponentially over the last decade. This trend has resulted in a critical need for unstructured data to be meaningfully filtered, analyzed and curated into relevant information that facilitates key operational and strategic decisions made by businesses, academic institutions and governments worldwide

    (p.135) Our History. The Company’s predecessors date back to the acquisition of two industry-leading information services businesses: Derwent World Patents Index (“DWPI”) and Institute for Scientific Information (“ISI”). DWPI was founded in 1951 by Monte Hyams who first began abstracting and publishing British patents on a weekly basis. This platform was then launched as the first online patent search tool in 1974. ISI was founded in 1957 by Dr. Eugene Garfield as a series of databases which laid the foundation for modern day bibliometrics and the influential Journal Impact Factor indicator. Thomson Reuters acquired DWPI in 1984 and ISI in 1992; it made further investments in complementary businesses centered on life science research, domain management and brand protection.

    Since Thomson Reuters acquired DWPI and ISI, the business now known as Clarivate has emerged as the leading global information services and analytics company serving the scientific research, intellectual property and life sciences end-markets. Through product development, investment and acquisitions, we have developed a full suite of solutions providing high-value structured information that facilitates the discovery, protection and commercialization of scientific research, innovations and brands.

    (p.139-140) INTELLECTUAL PROPERTY GROUP. Derwent Product Line. Our Derwent Product Line (“DPL”) enables customers to evaluate the novelty of potential new products, confirm freedom to operate with respect to their product design, help them secure patent protection, assess the competitive technology landscape and ensure their products comply with required industry standards. We provide a range of analytics capabilities and data visualization tools to improve the efficiency and accuracy of IP-driven decisions. Key products include Derwent Innovation, Techstreet and IP Professional Services.

    Derwent Innovation, our flagship DPL product, is used by R&D professionals and lawyers to monitor patent filings, search existing patents and analyze data to support R&D decision-making. It is a critical resource to help our customers secure patent protection and address litigation of patent infringement. The product is powered by The Derwent World Patents Index, our proprietary database of over 80 million patent publications from 50 patent and trademark offices, which represented 98% of all patents published globally in 2017, that has been developed and curated for over 50 years. The database combines data science with our team of domain experts who correct, enrich and abstract over four million global patents per year in over 25 languages. We provide customers with easy-to-understand summaries of patent filings that are prepared by our domain experts, who index and translate the highly technical and intentionally obscure patent filings into understandable abstracts that provide insights into a patent’s novelty, use and advantage over prior patents.

    Example Use Case.  An employee developing a new product or idea (e.g., a chemical engineer or a product designer) will access the Derwent Innovation database of patents to evaluate the novelty and determine the patentability of the new product or idea. [See an impressive promotional  video demonstrating such use. -ab]

    (p.158) COMPANY’S MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

    Overview.We offer a collection of high quality, market leading information and analytic products and solutions through our Science and IP Groups. ... Our Derwent product line offerings help patent and legal professionals in R&D intensive businesses evaluate the novelty and patentability of new ideas and products.

    (p.178-179) Goodwill. ...The total goodwill associated with this reporting unit [Derwent] was approximately $130.4 million as of December 31, 2018. Based on the latest annual impairment test, the estimated fair value of the Derwent reporting unit is approximately 2% above its carrying value.

    Update 8/1/2020: selections from SEC filings and Inventors presentations has been rearranged and .extended.

    2 files
    Last modified: 01 Aug 2020 2:31 PM | Anonymous member

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