If, like me, you are working in the software for publishers space then this acquisition by Wiley of Atypon is a big deal. Consolidation in the space - which is dominated by Atypon and Highwire - has been on the cards for a number of years; however, I wouldn't necessarily consider this a consolidation of providers. Wiley certainly will be making use of the Atypon technical expertise to build out their new Wiley content platform but I would also expect Atypon to continue to be a strong and aggressive competitor in the space. Atypon and Wiley will also want to ensure they protect (and add to) the current Atypon client roster and are probably likely to build a 'chinese wall' between Atypon and Wiley. They will do this to make sure the Atypon customers remain despite some degree of competition between Wiley and some of the Atypon customers.
Over the coming months it will be interesting to see how the other vendors in the market react to this news.
Here is the press release:
Wiley Signs Definitive Agreement to Acquire Atypon
John
Wiley & Sons, Inc., a global provider of knowledge and
knowledge-enabled services that improve outcomes in research,
professional practice and education, announced today it has signed a
definitive agreement to acquire Atypon, a Silicon Valley-based
publishing-software company, for $120 million in cash. Atypon (www.atypon.com)
is a trusted technology partner that enables scholarly societies and
publishers to deliver, host, enhance, market and manage their content on
the web. The transaction is expected to close October 1, 2016.
Atypon
is privately held and headquartered in Santa Clara, CA, with
approximately 260 employees in the U.S. and EMEA. The company provides
Literatum, an innovative platform that primarily serves the large
scientific, technical, medical and scholarly industry. This
sophisticated software gives publishers direct control over how their
content is displayed, promoted and monetized on the web. The company
generated over $31 million in calendar year 2015 revenue.
Atypon’s
valued customers include some of the largest and most prestigious names
in the industry. Literatum hosts nearly 9,000 journals, 13 million
journal articles and more than 1,800 publication web sites for over
1,500 societies and publishers, accounting for a third of the world’s
English-language scholarly journal articles.
Atypon
will be managed as a separate business unit while benefiting from the
financial stability and continuity of Wiley’s 209-year-old organization.
The data and plans from each of Atypon’s clients will remain
sequestered and behind firewalls. Clients use Atypon as their core
journal-delivery platform or as a way to supplement end-user engagement.
Wiley will itself become an Atypon customer.
“Wiley
is committed to enabling the success of our customers and partners to
advance research, discovery and learning,” said Mark Allin, President
and CEO of Wiley. “Atypon offers an outstanding set of publishing
solutions that can help industry participants like Wiley drive the
discovery of research. We will ensure Atypon’s flexible platform
continues to fully support the research community and industry partners
so they may better serve their own customers.”
Georgios
Papadopoulos, Atypon’s founder and CEO, will continue to lead the
business and will report to Mr. Allin. He said: “We have worked hard
with our partners to build the industry’s premier publishing platform
and support the needs of the research community. Atypon is delivering
solid growth and marked its most successful year in 2015, nearly
doubling its staff in two years. With Wiley’s commitment we are very
excited about the many opportunities to accelerate the expansion of
Atypon’s service offerings strengthening the fabric of scholarly
communications, expanding access, readership, and utilization, lowering
operating costs, enabling organizations to create and expand offerings
and products on their own, and building value for all stakeholders.”