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
Straker Translations Pays USD 1.1 Million for New Zealand Rival NZTC

11 months ago

February 12, 2020

Straker Translations Pays USD 1.1 Million for New Zealand Rival NZTC

M&A and Funding ·

by Esther Bond

On February 12, 2020

11 months ago
M&A and Funding ·

by Esther Bond

On February 12, 2020

Straker Translations Pays USD 1.1 Million for New Zealand Rival NZTC

On February 10, 2020, New Zealand-headquartered language service provider (LSP) Straker Translations acquired local rival New Zealand Translation Centre Limited International (NZTC International). 

Founded more than 30 years ago, NZTC International provides both interpreting and translations services to a mix of government and corporate customers in its home market and the Asia Pacific (APAC) region. According to Straker’s market announcement, the company employs 25 people across two offices in its Wellington headquarters and in Hawkes Bay, both in New Zealand.

Australia-listed Straker Translations paid an upfront consideration of NZD 0.92m for NZTC, a predominantly cash payment that also included NZD 0.1m in Straker shares. The terms of the transaction will see Straker pay an additional potential earn-out of up to NZD 0.78m, bringing the total consideration to a maximum of NZD 1.7m (USD 1.1m). 

Advertisement

NZTC generated around NZD 4.3m in 2019 revenues, meaning Straker will pay a maximum price of 0.4x revenues if the full earn-out is achieved. This is on the low end of language industry multiples observed by Slator, which ranged between 0.41 and 5.7x revenues in 2018 and 2019. No profitability figures were provided by Straker. 

Slator 2019 Language Industry M&A and Funding Report

Data and Research, Slator reports
34-page report. Language industry M&A and startup funding. Transaction valuations, trade sales, financial backing, private equity influence, main rationale, seller verticals, geographical analysis, startup funding analysis.
$450 BUY NOW

Straker Translations CEO Grant Straker declined to comment on factors that influenced the purchase price, or to comment beyond statements provided in Straker’s market announcement.

According to the announcement, there will be no immediate change to NZTC’s management. The company’s two founders, Liz Seymour and Paul Sulzberger, will both stay on in the combined organization “until the business has been fully integrated” onto Straker’s translation management system, RAY.

NZTC is “earnings accretive” and is expected to bring “substantial upside potential” once migrated to RAY, Straker said in the announcement. The company’s most recent acquisition prior to NZTC, On Global Language Marketing, took just six months to migrate to RAY.

With muted top-line growth of 2% in the company’s third quarter 2020 (to December 31, 2019), Straker’s latest acquisitions have not yet impacted in any meaningful way on its earnings either. The company remained in the red in the nine months to December 31, 2019, with net cash outflows of USD -0.84m. 

Shares in Straker (STG:ASX) are trading at AUD 1.25, 27% below the initial IPO price in October 2018. The company’s current market cap is around USD 44m. 

TAGS

Grant StrakerLiz SeymourNew Zealand Translation Centre Limited InternationalNZTC InternationalPaul SulzbergerStraker Translations
SHARE
Esther Bond

By Esther Bond

Research Director at Slator. Localization enthusiast, linguist and inquisitor. London native.

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
Rheinschrift Language Services – Strategic Improvements and Workforce Expansion in 2021

Rheinschrift Language Services – Strategic Improvements and Workforce Expansion in 2021

by Rheinschrift Language Services

Memsource Acquires Phrase

Memsource Acquires Phrase

by Memsource

Across Systems will be part of the Volaris Group

Across Systems will be part of the Volaris Group

by Across Systems GmbH

Upcoming Events

See All
  1. Handling Sensitive Information Webinar

    Handling Sensitive Calls with Limited English Proficient Consumers

    by Lionbridge

    · February 10

    Learn more about how Lionbridge Over-the-Phone Interpretation Services can help bridge communication gaps with limited...

    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

Top Language Industry Quotes of 2020

Top Language Industry Quotes of 2020

by Monica Jamieson

The Most Popular Language Industry Stories of 2020

The Most Popular Language Industry Stories of 2020

by Seyma Albarino

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.