Acquisition of Idiom
February 11 2008 - 2:00AM
UK Regulatory
RNS Number:6956N
SDL PLC
11 February 2008
SDL plc
Acquisition of Idiom for $22m (�11m)
Strengthens SDL's position as a leading provider of Global Information
Management solutions
Maidenhead, UK - 11 February, 2008. SDL plc ("SDL"), a leading provider of
Global Information Management (GIM) solutions, announced today that it has
acquired Idiom Technologies Inc ("Idiom"), one of the leading providers of
"Software as a Service" translation management systems.
SDL has acquired Idiom for a consideration of $21.7m (�11.1m*) plus the
assumption of debt and working capital of $4.9m (�2.5m*). The transaction will
see Mike Iacobucci continue to serve as CEO of Idiom, reporting to Mark
Lancaster, Chairman and CEO of SDL.
Idiom Technologies was founded in January 1998 with a mission to offer large
global enterprise class software to manage the complex translation process.
Idiom introduced WorldServerTM later that year. Today, WorldServer is a market
leading translation management system which is used by over 60 leading global
companies worldwide. Idiom is based in Boston, Massachusetts and employs
approximately 50 staff, primarily in the United States.
Idiom's audited revenues for the year ended 31 December 2005 were $7.9m (2006
unaudited - $10.0m), generating an audited loss before taxation of $5.9m (2006
unaudited loss - $5.3m). The audited gross assets of the business at 31 December
2005 were $5.4m (2006 unaudited - $5.2m). The Directors expect Idiom to be
break-even at the operating level in the first year of SDL's ownership and to
contribute positively thereafter. The acquisition is being financed in part by
the drawdown of �9.5m from a new �20m revolving credit facility SDL has recently
signed, and in part from SDL's own cash resources.
SDL's acquisition of Idiom will
* Enhance SDL's GIM technology offering
* Add a number of blue chip customers to SDL's customer base
* Combine SDL's and Idioms technology solutions to provide better
efficiencies of scales and shared intellectual property
* Provide a smoother solution for managing the translation supply chain
* Increase SDL's consultancy, sales and development expertise
* Further strengthen SDL's leadership position as a leading provider of
Global Information Management solutions
In today's market place, global companies need to manage ever increasing volumes
of multilingual content to support their global markets. Existing Content
Management Systems (CMS) do not provide the required functionality to manage the
translation supply chain and centralized repository for managing multilingual
content across a company's enterprise.
Mark Lancaster, Chairman and Chief Executive of SDL, commented,
"In today's competitive landscape, global trade is an imperative that companies
should not ignore. SDL and Idiom both provide solutions that help companies
manage global information. We feel that the market has reached a stage where
Global Information Management is now acknowledged as a key ingredient for any
large global company that manages global content across their multilingual,
multicultural customer base. We feel that we can best address this expanding
need by combining the resources of SDL and Idiom to provide a single solution
with compatibility across the supply chain, now and in the future. The
acquisition of Idiom will complement SDL's existing solutions and will provide
customers with enhanced applications, backed by the global presence and
stability."
Mike Iacobucci, CEO of Idiom, said,
"We are delighted with today's announcement. Idiom has established itself as an
important player in the globalization market. SDL and Idiom have invested
significant resources in the development of the Global Information Management
(GIM) market. We believe that this market is at a turning point and expect to
see substantial growth over the next couple of years. Being part of the SDL
group will allow SDL and Idiom to provide solutions to satisfy this market
globally. Together we can create and deliver complementary technology and
services that capitalize on this growing market momentum."
For more information visit www.sdl.com/idiom
* Exchange rate: �1: $1.95
-ends-
For more information on SDL, please contact:
SDL plc Tel: 01628 410 127
Mark Lancaster, Chief Executive
Alastair Gordon, Finance Director
Financial Dynamics Tel: 020 7831 3113
Juliet Clarke / Edward Bridges / Haya Chelhot
Investec Tel: 020 7597 5000
Erik Anderson / Andrew Pinder
About SDL
SDL (London Stock Exchange: 'SDL') is the leader in Global Information
Management (GIM) solutions that empower organizations to accelerate the delivery
of high-quality multilingual content to global markets. Its enterprise software
and services integrate with existing business systems to manage global
information from authoring to publication and throughout the distributed
localization supply chain.
Global industry leaders rely on SDL to provide enterprise software or hosted
services for their GIM processes, including Audi, Bayer, Best Western, Bosch,
Canon, Deutsche Bank, Kodak, Microsoft, Morgan Stanley, Reuters and SAP. SDL has
implemented more than 400 enterprise GIM solutions, has deployed over 150,000
software licenses across the GIM ecosystem and provides access to on-demand
translation portals for 10 million customers per month. Over 1,000 service
professionals deliver consulting, implementation and language services through
its global infrastructure of more than 50 offices in 30 countries. For more
information, visit www.sdl.com.
All trademarks are the property of their respective owners.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQFGGMZVMZGRZG
Sdl (LSE:SDL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Sdl (LSE:SDL)
Historical Stock Chart
From Jul 2023 to Jul 2024
