Wolters Kluwer Legal & Regulatory has signed an agreement to acquire CGE Risk Management Solutions B.V. (CGE), a provider of risk management software, including the industry-standard BowTieXP solution. The acquisition will extend Wolters Kluwer’s presence in the growing operational risk management software market. 

CGE Risk Management Solutions serves risk experts in over 2,500 leading corporations and public entities worldwide who operate in high-risk and asset-intensive industries, including oil & gas, energy, aviation, mining, transportation, utilities, chemicals, manufacturing, and healthcare. 

CGE will become part of Wolters Kluwer’s Environmental, Health & Safety and Operational Risk Management (EHS/ORM) software group, which also includes Enablon and eVision. The combined offerings will enable customers to improve their EHS, ORM, and risk performance and to conduct more responsible, productive, and safe operations.  

CGE recorded revenues of €5m in 2018, mainly from software and services. Wolters Kluwer expects the acquisition to achieve a return on invested capital (ROIC) above the group’s after tax weighted average cost of capital (8%) within three to five years of completion. The transaction is expected to have a positive but immaterial impact on adjusted earnings in its first full year. CGE was founded in 2004 and has approximately 30 employees, with headquarters in The Netherlands. CGE has a global customer base with the majority of customers in Europe, North America, and Australia. 

Stacey Caywood, CEO, Wolters Kluwer Legal & Regulatory, said: “The addition of CGE Risk Management Solutions to our Enablon and eVision offerings will further the value Wolters Kluwer delivers to corporations in supporting their most critical workflows, and advances our leadership in the market.” 

The transaction is expected to close in the first quarter of 2020.