logo image
  • News
    • People Moves
    • Deal Wins
    • Demand Drivers
    • M&A and Funding
    • Financial Results
    • Technology
    • Academia
    • Industry News
    • Features
    • Machine Translation
    • — Divider —
    • Slator Pro
    • — Divider —
    • Press Releases
    • Sponsored Content
  • Data & Research
    • Research Reports & Pro Guides
    • Language Industry Investor Map
    • Real-Time Charts of Listed LSPs
    • Language Service Provider Index
  • Podcasts & Videos
  • Events
    • Design Thinking – February 2021
    • — Divider —
    • SlatorCon Coverage
    • Other Events
  • Directory
  • RFP Center
  • Jobs
MENU
  • News
    • People Moves
    • Deal Wins
    • Demand Drivers
    • M&A and Funding
    • Financial Results
    • Technology
    • Academia
    • Industry News
    • Features
    • Machine Translation
    • — Divider —
    • Slator Pro
    • — Divider —
    • Press Releases
    • Sponsored Content
  • Data & Research
    • Research Reports & Pro Guides
    • Language Industry Investor Map
    • Real-Time Charts of Listed LSPs
    • Language Service Provider Index
  • Podcasts & Videos
  • Events
    • Design Thinking – February 2021
    • — Divider —
    • SlatorCon Coverage
    • Other Events
  • Directory
  • RFP Center
  • Jobs

Advertise on Slator! Download the 2021 Online Media Kit Now

  • Slator Market Intelligence
  • Slator Advertising Services
  • Slator Advisory
  • Login
Search
Generic filters
Exact matches only
Advertisement
RWS Doubles Down on Life Sciences and Acquires CTi for $70M

5 years ago

November 4, 2015

RWS Doubles Down on Life Sciences and Acquires CTi for $70M

M&A and Funding ·

by Florian Faes

On November 4, 2015

5 years ago
M&A and Funding ·

by Florian Faes

On November 4, 2015

RWS Doubles Down on Life Sciences and Acquires CTi for $70M

The consolidation among mid-sized Language Service Providers continues. Corporate Translations Inc. (CTi), a Connecticut-based life sciences translation and linguistic validation provider, has been acquired by RWS Holdings for a $70 million in cash. RWS Group is a provider of commercial translations and intellectual property support services with its own life sciences translation division dealing with regulatory affairs, clinical trials, medical devices, manufacturing, and patient reported outcome.

At 14.5x 2014 EBITDA and almost 3x revenues the valuation RWS is paying is very high compared to other recent acquisitions in the space. But RWS is confident that the move is “immediately and significantly” earnings enhancing.

The acquisition comes at the heels of a mid-October 2015 year end trading statement the company released announcing that it predicts revenue and profit to exceed market expectations, citing patent translation activities as a contributor to the better-than-expected results.

Advertisement

The statement indicated that despite a flat sales performance in the first half of the trading year, at the end of which they reported GBP 45.4 million ($70 million) in sales compared to GBP 46.9 million during H1 2014, they witnessed “significant recovery” in the six months that followed. The company reported an increase in sales by almost 10% sequentially to an estimated GBP 49.7 million compared to H2 2014’s GBP 46.7 million.
– American Invents Act Deadline Delivers Surprise Boost to RWS Full Year Results

CTi showed $23 million in revenues in its latest audited financial statement for the 2014 calendar year, with adjusted EBITDA of $4.8 million. The acquisition is funded by $25 million worth of internal cash resources and a five-year $45 million Barclays loan.

Correction: In its preliminary results for the year ended 30 September 2015 RWS disclosed that the $70 million consideration is contingent upon CTi reporting “not less than $7 million EBITDA for the year ended 31 December 2015” and an estimated $2 million for working capital. This would put the EBITDA multiple paid at 10x if CTi actually achieved this ambitious target. How much RWS is paying if CTi fails to reach the target was not disclosed.

TAGS

CTilife sciencesmedical translationRWS
SHARE
Florian Faes

By Florian Faes

Co-Founder of Slator. Linguist, business developer, and mountain runner. Based in the beautiful lakeside city of Zurich, Switzerland.

Advertisement

SUBSCRIBE TO THE SLATOR WEEKLY

Language Industry Intelligence
In Your Inbox. Every Friday

SUBSCRIBE

SlatorSweepSlatorPro
ResearchRFP CENTER

PUBLISH

PRESS RELEASEDIRECTORY LISTING
JOB ADEVENT LISTING

Bespoke advisory including speaking, briefings and M&A

SLATOR ADVISORY
Advertisement

Featured Reports

See all
Slator 2020 Language Industry M&A and Funding Report

Slator 2020 Language Industry M&A and Funding Report

by Slator

Slator 2021 Data-for-AI Market Report

Slator 2021 Data-for-AI Market Report

by Slator

Slator 2020 Medtech Translation and Localization Report

Slator 2020 Medtech Translation and Localization Report

by Slator

Pro Guide: Sales and Marketing for Language Service Providers

Pro Guide: Sales and Marketing for Language Service Providers

by Slator

Press Releases

See all
XTRF Launches a Bi-Monthly Free Networking Event for Localization Professionals

XTRF Launches a Bi-Monthly Free Networking Event for Localization Professionals

by XTRF

150 Million Words Translated: the German EU Council Presidency Translator Sets New Records

150 Million Words Translated: the German EU Council Presidency Translator Sets New Records

by Tilde

BeLazy Announces Full Automation for Plunet

BeLazy Announces Full Automation for Plunet

by BeLazy

Upcoming Events

See All
  1. Memsource MT Post-Editing Pricing Models Webinar

    Pricing Models for MT Post-Editing Workshop

    by Memsource

    · February 3

    Hear a panel of innovative localization professionals share different approaches for MT post-editing pricing.

    More info FREE

Featured Companies

See all
Text United

Text United

Memsource

Memsource

Wordbank

Wordbank

Protranslating

Protranslating

Seprotec

Seprotec

Versacom

Versacom

SDL

SDL

Smartling

Smartling

Lingotek

Lingotek

XTM International

XTM International

Smartcat

Smartcat

Translators without Borders

Translators without Borders

STAR Group

STAR Group

memoQ Translation Technologies

memoQ Translation Technologies

Advertisement

Popular articles

Why Netflix Shut Down Its Translation Portal Hermes

Why Netflix Shut Down Its Translation Portal Hermes

by Esther Bond

The Slator 2020 Language Service Provider Index

The Slator 2020 Language Service Provider Index

by Slator

Top Language Industry Quotes of 2020

Top Language Industry Quotes of 2020

by Monica Jamieson

SlatorPod: The Weekly Language Industry Podcast

connect with us

footer logo

Slator makes business sense of the language services and technology market.

Our Company

  • Support
  • About us
  • Terms & Conditions
  • Privacy Policy

Subscribe to the Slator Weekly

Language Industry Intelligence
In Your Inbox. Every Friday

© 2021 Slator. All rights reserved.

Sign up to the Slator Weekly

Join over 13,000 subscribers and get the latest language industry intelligence every Friday

Your information will never be shared with third parties. No Spam.