TransPerfect Seeks Business Services Buys of Up To USD 50m, Co-CEO Says
By Clifford Carlson
Mergermarket - January 15, 2013
TransPerfect Translations International, a New York-based supplier of diverse business services, is seeking global acquisitions in the USD 5m to USD 50m range, said co-CEO Liz Elting.
Closely-held TransPerfect had sales of more than USD 300m in 2011 and grew to about USD 340m in 2012, and Elting expects the company to maintain a high rate of growth through acquisitions and organic growth in coming years. The 20-year-old company has its roots in the translation industry and offers a wide array of services to law firms, but has diversified into a broad array of business services for global companies, and Elting said it will make acquisitions primarily in existing areas.
TransPerfect's most recent acquisition of Digital Reef in October 2012 was primarily to enhance the TransPerfect Legal Solutions unit of the company and its e-discovery capabilities, but as with its acquisition of Counselor Resource Group in April, Elting said the company is primarily targeting customer reach and talent in new acquisitions. With operations in 80 cities around the globe, TransPerfect does not need to make acquisitions to enter new markets, but will look at targets worldwide, she said.
Much of the company's new business focus has been helping customers expand mobile platforms across languages and national borders and in providing real-time trial interactive translation services to law firms. Elting said the company will look for acquisitions to expand in those areas as well as its more established technology- and human-based translation services, litigation support, staffing, data discovery and virtual data rooms.
In October, the company acquired Yamane Documentation, a Japanese translation, website development and technical writing company focusing on English/Japanese content.
TransPerfect has undertaken all of its acquisitions using cash. Co-founders and sole owners Elting and co-CEO Phil Shawe bought out earlier investors in
2006 and the company has no outside equity or debt.
TransPerfect is regularly approached by potential strategic buyers and private equity firms, but Elting said that the company expects to remain independent.
TransPerfect does not retain investment bankers to target potential acquisitions, but welcomes inbound inquiries. Elting said the company works with different law firms and accounting firms depending on the country.