Clarivate to use $400 million of free cash flow to de-lever below 4x

By Devika Patel

Knoxville, Tenn., March 20 – Clarivate plc expects to generate about $500 million of free cash flow and will use most of that cash to de-lever to below 4x in 2023.

As the company moves into 2024, the free cash flow may also be used for mergers or acquisitions as well as continued deleveraging.

“We expect to generate about $500 million of free cash flow, so we have our preferred stock that we’ll pay a dividend on, but the balance of that, over $400 million, will be used to de-lever this year ... in the near term, we want to bring our leverage down below four turns, approaching kind of the mid-threes and then, as we look to next year beyond, we’ll be able to be a bit more balanced, the combination of de-levering and then potentially some buybacks and M&A as well,” executive vice president and chief financial officer Jonathan Collins said at the BofA Securities 2023 Information & Business Services Conference on March 16.

Clarivate is a London-based data and analytics company focused on scientific and academic research and patent intelligence.

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