Piramal Enterprises has signed an agreement for the sale of its Decision Resources Group (DRG) business to US-based Clarivate Analytics for $950 million (over Rs 6,745 crore), and will use the money to reduce debt and explore growth opportunities.

The transaction is expected to be completed by the end of February 2020, Piramal Enterprises Limited (PEL) said in a statement.

PEL DRG Dutch HoldCo BV, a 100 per cent subsidiary of PEL and the holding company for DRG, has signed a definitive agreement for the sale of DRG to Clarivate Analytics for $950 million, it added.

This includes $900 million on closing and $50 million to be received at the end of 12 months from the date of closing.

On how the company plans to use the sale proceeds, Piramal Group chairman Ajay Piramal said,” We will use it to reduce debt and to grow our existing businesses as well as look at some inorganic opportunities.”

As a company, “we have believed that we should do what is in the best interest of shareholders and therefore if we feel the value that we can get by selling the business is good, we do it”, Piramal said.

PEL had initially invested $650 million in 2012 to acquire DRG, out of which $260 million was infused as equity. It has realised 2.3 times its initial equity investment in rupee terms.