Are we seeing a power shift in the world of legal publishing. Reuters report that Wolters Kluwer have purchased Lexis Nexis Germany from Reed.. Is this just the beginning of the end for Lexis and it's involvement in the world of legal publishing?
Here's what Reuters are saying
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Wolters Kluwer buys Lexis Nexis Germany from Reed
http://www.reuters.com/article/idUSLDE6AF0AY20101116
Nov 16 (Reuters) - Dutch publisher Wolters Kluwer (WLSNc.AS) agreed to buy Reed Elsevier's (REL.L) (ELSN.AS) Lexis Nexis Deutschland, strengthening its leading position in German legal services with an online platform.
The parties did not disclose financial terms for the sale of the business, which has more than 200 employees and is based in the northern city of Muenster. Reed will retain Lexis Nexis's German business information activities, with about 20 staff.
Wolters Kluwer and Reed Elsevier compete with Thomson Reuters' (TRI.TO)(TRI.N) Westlaw to sell legal publications, data and services to law firms around the world. Wolters is strong in Europe, while Westlaw is stronger in North America.
Wolters has been cementing its position in Germany for 25 years, partly through acquisitions, and owns the Carl Keymanns, Luchterhand and Werner imprints there. Through the Lexis Nexis deal, it will acquire brands including ZAP.
SNS Securities analyst Michel Veul welcomed the acquisition of Lexis Nexis Deutschland, whose annual sales he estimated at between 40 and 50 million euros ($56 to $70 million).
"We expect growth of these activities to be relatively high as the German online market grows rapidly, from a relatively strong historical adherence to print publishing," he wrote in a note on Tuesday.
He expected only minor adjustments to his earnings expectations for Wolters Kluwer, which currently employs about 1,000 people in Germany.
At 1210 GMT shares in Wolters Kluwer were down 1 percent at 15.72 euros, while Reed Elsevier shares were down 1.1 percent at 530.5 pence in London, both outperforming Europe's media index .SXMP, which was down 2.1 percent.
"This acquisition is an important milestone to establish Wolters Kluwer as a comprehensive and efficient online service provider for legal information in Germany," Wolters Kluwer Germany Chief Executive Ulrich Hermann said in a statement.
Wolters Kluwer said the transaction was subject to regulatory approvals and was expected to close around the end of the year. (Editing by Chris Wickham and Will Waterman) ($1 = 0.7158 euro)
