11th Feb 2008 07:00
SDL PLC11 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 ofGlobal Information Management (GIM) solutions, announced today that it hasacquired 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 theassumption of debt and working capital of $4.9m (£2.5m*). The transaction willsee Mike Iacobucci continue to serve as CEO of Idiom, reporting to MarkLancaster, Chairman and CEO of SDL. Idiom Technologies was founded in January 1998 with a mission to offer largeglobal enterprise class software to manage the complex translation process.Idiom introduced WorldServerTM later that year. Today, WorldServer is a marketleading translation management system which is used by over 60 leading globalcompanies worldwide. Idiom is based in Boston, Massachusetts and employsapproximately 50 staff, primarily in the United States. Idiom's audited revenues for the year ended 31 December 2005 were $7.9m (2006unaudited - $10.0m), generating an audited loss before taxation of $5.9m (2006unaudited loss - $5.3m). The audited gross assets of the business at 31 December2005 were $5.4m (2006 unaudited - $5.2m). The Directors expect Idiom to bebreak-even at the operating level in the first year of SDL's ownership and tocontribute positively thereafter. The acquisition is being financed in part bythe drawdown of £9.5m from a new £20m revolving credit facility SDL has recentlysigned, 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 volumesof multilingual content to support their global markets. Existing ContentManagement Systems (CMS) do not provide the required functionality to manage thetranslation supply chain and centralized repository for managing multilingualcontent 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 companiesshould not ignore. SDL and Idiom both provide solutions that help companiesmanage global information. We feel that the market has reached a stage whereGlobal Information Management is now acknowledged as a key ingredient for anylarge global company that manages global content across their multilingual,multicultural customer base. We feel that we can best address this expandingneed by combining the resources of SDL and Idiom to provide a single solutionwith compatibility across the supply chain, now and in the future. Theacquisition of Idiom will complement SDL's existing solutions and will providecustomers with enhanced applications, backed by the global presence andstability." Mike Iacobucci, CEO of Idiom, said, "We are delighted with today's announcement. Idiom has established itself as animportant player in the globalization market. SDL and Idiom have investedsignificant resources in the development of the Global Information Management(GIM) market. We believe that this market is at a turning point and expect tosee substantial growth over the next couple of years. Being part of the SDLgroup will allow SDL and Idiom to provide solutions to satisfy this marketglobally. Together we can create and deliver complementary technology andservices 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 InformationManagement (GIM) solutions that empower organizations to accelerate the deliveryof high-quality multilingual content to global markets. Its enterprise softwareand services integrate with existing business systems to manage globalinformation from authoring to publication and throughout the distributedlocalization supply chain. Global industry leaders rely on SDL to provide enterprise software or hostedservices for their GIM processes, including Audi, Bayer, Best Western, Bosch,Canon, Deutsche Bank, Kodak, Microsoft, Morgan Stanley, Reuters and SAP. SDL hasimplemented more than 400 enterprise GIM solutions, has deployed over 150,000software licenses across the GIM ecosystem and provides access to on-demandtranslation portals for 10 million customers per month. Over 1,000 serviceprofessionals deliver consulting, implementation and language services throughits global infrastructure of more than 50 offices in 30 countries. For moreinformation, 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 ExchangeRelated Shares:
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