WALTHAM, Mass., Nov. 9, 2015 /PRNewswire/ -- Lionbridge
Technologies, Inc. (Nasdaq: LIOX) today announced that it has
acquired New York-based Geotext
Translations, Inc., a privately held provider of legal translation
services. The addition of Geotext will enable Lionbridge to meet
growing demand for integrated, high-quality legal translation
solutions and access Geotext's long-standing relationships with
clients in the legal industry.
"International transactions and commerce have fueled the need
for specialized legal translation services, from patent
translation, to support for eDiscovery in complex litigation, to
translation of commercial contracts. As content in the legal market
continues to grow, the demand for integrated, high-quality
translation services is accelerating," said Rory Cowan, CEO, Lionbridge. "Geotext is the
ideal partner for Lionbridge, with a proven track record of
providing trusted legal translation services that offer clients
unparalleled value, knowledge and experience. We will build upon
Geotext's skills as we expand relationships with clients in this
growing market sector."
"Geotext realizes significant benefits by becoming part of
Lionbridge," said Joe Duncan, CEO of
Geotext. "We gain a powerful worldwide sales channel and a proven
global delivery platform to complement our New York, London and San
Francisco operations. The relationship will increase our
production capacity while expanding our footprint across diverse
international legal markets such as Brazil, China, Germany, Korea and beyond. Our clients will
benefit from Lionbridge's global team of experts in offices across
28 countries and cutting-edge technology solutions that can be
applied to large-scale litigations and investigations around the
world."
Geotext had unaudited trailing twelve months of revenue of
approximately $17 million for the
period ended September 30, 2015.
Lionbridge is purchasing Geotext for a total estimated cash
consideration of approximately $11
million and additional earn-out potential which would be
payable in cash over three years, subject to the attainment of
certain revenue metrics. The consideration is being satisfied using
Lionbridge's existing cash resources. The Company expects the
acquisition will contribute modestly to non-GAAP earnings in 2016,
including minimal acquisition and integration costs.
About Lionbridge
Lionbridge enables more than
800 world-leading brands to increase international market share,
speed adoption of products and effectively engage their customers
in local markets worldwide. Using our innovative technology
platforms and our global network of more than 100,000 independent,
in-country professionals, we provide translation, online marketing,
global content management and application testing solutions that
ensure global brand consistency, local relevancy and technical
usability across all touch points of the customer lifecycle. Based
in Waltham, Mass., Lionbridge
maintains solution centers in 28 countries. To learn more, visit
http://www.lionbridge.com.
Forward-Looking Statements
This press release contains forward-looking statements that involve
risks and uncertainties, including expectations for revenue and
earnings related to the acquisition of Geotext for 2016.
Lionbridge's actual experiences, actions, financial and operating
results may differ materially from those discussed in the
forward-looking statements. Factors that might cause such a
difference include the timing and cost of integration activities;
customer acceptance of the transaction; integration expense; risks
associated with management of growth, transition and integration;
the failure to keep pace with the rapidly changing requirements of
its clients; inherent uncertainties of litigation and associated
need for translation services; costs associated with and
consequential to the acquisition and integration of Geotext and
benefits realized from the acquisition; risks associated with
competition and competitive pricing pressures; and Lionbridge's
ability to forecast revenue and operating results. For a more
detailed description of the risk factors associated with
Lionbridge, please refer to the Company's Annual Report on Form
10-K for the year ended December 31,
2014 and subsequent filings with the SEC (copies of which
may be accessed through the SEC's website at
http://www.sec.gov).
Media Contacts:
Sara
Buda
Lionbridge
Technologies
sara.buda@lionbridge.com
+1-978-964-1404
Morgen Myrdal
Geotext Translations
mmyrdal@geotext.com
+1-212-631-7432
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SOURCE Lionbridge Technologies