Clarivate Plc · NYSE:CLVT

Clarivate — Clarivate Analytics — Merger or Acquisition (January 2020)

14 slides from Clarivate's merger presentation, Jan 17, 2020

  1. Slide 1: Clarivate to Acquire Decision Resources Group Supplemental Materials

    Clarivate to Acquire Decisions Resources Group Supplemental Materials January 17, 2020

  2. Slide 2: Forward-Looking Statements

    2 Forward - Looking Statements These materials contain “forward - looking statements” as defined in the Private Securities Litigation Reform Act of 1995 . Forward - looking statements are neither historical facts nor assurances of future performance . Instead, they are based only on management’s cur

  3. Slide 3: Transaction Highlights

    3 Transaction Highlights • Clarivate has signed a definitive agreement to acquire Decision Resources Group (“DRG”), a division of Piramal Enterprises Limited (“PEL”), for $900 million in cash and approximately $50 million in Clarivate stock (to be issued following the first anniversary of closing) •

  4. Slide 4: Strategic rationale: complementary fit with Clarivate Life Sciences

    • Combines Clarivate’s leading pre - clinical solutions with DRG’s commercialization solutions to deliver a complete data - driven solution across the entire Life Sciences, drug, device and medical technology value chain • Creates a leading Life Sciences data and analytics provider of differentiated

  5. Slide 5: Strategic and Financial Highlights

    5 Strategic and Financial Highlights • In 2019, DRG generated $207 million in revenue, with 9% organic growth and $47 million of Adjusted EBITDA which increases to $77 million upon attainments of $30m of cost synergies • DRG’s 2019 revenue composition is 42% subscription, 27% re - occurring and 31%

  6. Slide 6: Adjusted Revenue Overview

    6 Adjusted Revenue Overview Segment Revenue Type Geographic 56% 44% Science Group Intellectual Property Group 82% 18% Subscription Transactional 45% 55% North America International FY’18 Clarivate FY’18 Combined 63% 37% Science Group Intellectual Property Group 75% 5% 20% Subscription Re-Occurring T

  7. Slide 7: DRG: Leading Provider of Data & Insights for the Life Sciences Vertical

    7 DRG: Leading Provider of Data & Insights for the Life Sciences Vertical Business Overview Product / Service Offering by Use Case • DRG provides data - driven resources and analytics solutions to enable healthcare market participants to make informed business decisions about critical commercial cha

  8. Slide 8: DRG: Deep and Broad Customer Relationships

    8 DRG: Deep and Broad Customer Relationships Biopharma Med Tech Payer / Provider Other Life Sciences [DRG] works with 50 of the Top 50 Life Sciences companies Med Tech [DRG] works with 19 of the top 20 medical device companies Payers/Providers [DRG] works with 8 of the top 10 U.S. payers and top U.S

  9. Slide 9: Acquisition Completes the Pre-Clinical to Commercial Data Value Chain

    9 Acquisition Completes the Pre - Clinical to Commercial Data Value Chain Clarivate Will Now Offer a Broader Synergistic Portfolio of Tools and Services Across the Entire Lifecycle from Research to Outcome Drug Development Intelligence & Analytics Preclinical Pre - clinical Clinical Post - launch Di

  10. Slide 10: Life Sciences Analytics and Information Services is a Large and Growing Market

    10 Life Sciences Analytics and Information Services is a Large and Growing Market Global Life Sciences Analytics to Grow at ~12% CAGR Projected Growth by Geography (CAGR 2019 - 2024) 8% 12% 10% 15% ​ 2019E ​ 2024E ​ MedTech ​ (11% CAGR) ​ Pharma ​ (13% CAGR) ​ Payer, Provider, Others ​ (10% CAGR) ​

  11. Slide 11: Transaction Parameters and Financing Considerations

    1 1 Transaction Parameters and Financing Considerations • Purchase Price: $950 million – $900 million backstopped via a committed bridge facility – Clarivate expects to raise the capital in the form of debt and equity before the closing of the transaction – $50 million equity issued to Piramal Enter

  12. Slide 12: Appendix

    Appendix

  13. Slide 13: Reconciliation of Non-GAAP Financial Measures: DRG Adjusted EBITDA

    1 Insert footer Reconciliation of Non - GAAP financial measures and required reported data DRG Adjusted EBITDA for the Years Ended December 31, 2019 and 2018 (unaudited) Descriptions Adjusted EBITDA adjustments 1. Includes costs incurred related to various restructuring efforts as a result of change

  14. Slide 14: Thank you

    cae Thank you

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