Memsource just got a fresh shot in the arm from majority owner Carlyle.
In a press release dated June 28, 2022, the SaaS translation technology provider said it had secured EUR 15m in funds from Carlyle and existing investors. The funds will be put toward worldwide talent acquisition, product development, and global expansion.
This additional growth capital injection follows a changing of the guard: David Čaněk recently stepped down as CEO in favor of VC and angel investor, Georg Ell; and SaaS sales exec Edmund Ovington was hired away from Unbabel to serve as General Manager for North America.
Carlyle’s acquisition of a majority stake in Memsource two years ago was interesting as well. For one thing, the transaction closed just as the world plunged into lockdown. Also, the midsummer 2020 Memsource sale is still one the largest ever in the translation and localization tech space, establishing an important benchmark in the pricing of language technology deals.
Slator Software-as-a-Service (SaaS) Localization Report
Memsource and Carlyle declined to disclose financials at the time, but did provide some growth metrics. A back-of-envelope computation would probably put Carlyle’s original investment at USD 40m for 80% or more of Memsource (on an estimated valuation of ca. USD 45m).
Carlyle’s EUR 15m (USD 16m) capital injection is a sign that the private equity firm is willing to double down on its investment — in an attempt, perhaps, to grab additional market share as funding for less mature startups has become more difficult to secure.
Your information will not be shared with third parties. No Spam.