Interesting report in yesterday’s WSJ.
They might have decided not to spend money on marketing with third parties ( per our report of last week) but it seems they are looking to buy.. whether these companies be tech based or publishers it doesn’t really say.. we shall see !
Wolters Kluwer N.V. is on the hunt for acquisitions in the U.S. following the federal tax overhaul, according to the company’s finance chief.
“We continue to evaluate smaller bolt-on acquisitions to strengthen our portfolio,” Chief Financial Officer Kevin B. Entricken Thursday said in an interview with CFO Journal. “If these [targets] are in the U.S., that does help,” he added.
Bolt-on acquisitions are transactions in which a company buys a smaller firm to add it to its business. Wolters Kluwer did not share its mergers and acquisitions budget.
The Dutch information services and software company generates around 60% of its revenues in North America, the majority of that in the U.S. Total revenues were €4.42 billion ($5.39 billion) in 2017, up 3% from €4.28 billion in 2016.
The drop in the U.S. corporate tax rate to 21% from 35% is making investments in the country more attractive, Mr. Entricken said. This “is good for a company like us,” Mr. Entricken said.
Wolters Kluwer’s global effective tax rate will fall to 26% in 2018, from 27.% last year, giving the firm “a bit of a benefit” from the lower U.S. tax rate, Mr. Entricken said.
However, not all of the changes brought by the tax overhaul are positive for Wolters Kluwer, Mr. Entricken said. This includes certain reductions in interest deductibility. “The U.S. tax base is certainly getting broader,” he said.
The finance chief also said he plans to automate more tasks in his department this year to boost efficiency.
A faster quarterly close is one of Mr. Entricken’s goals. Wolters Kluwer currently takes around five days after the end of each quarter to consolidate its results. “There are improvements that we will be making,” Mr. Entricken said. He did not disclose how much the company intends to spend on these changes.
Wolters Kluwer also looks at streamlining its audit processes by deploying data analytics, Mr. Entricken said. “Automation will strengthen our organization,” he added.
