RWS to buy US life science language provider for $82.5m
Intellectual property support provider RWS Holdings is to buy Luz, a San Francisco-based life sciences language service provider, for $82.5m, in order to increase its presence in the US.
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The company believes that Luz will strengthen its position in the life sciences market as it adds complementary regulatory and medical device specialisms and that it would increase its footprint in the US.
It will also build on its November 2015 acquisition of Connecticut-based Corporate Translations (CTi), a life sciences translation and linguistic validation provider.
The Luz acquisition is expected to be immediately earnings enhancing and is anticipated to complete on 17 February.
The AIM-listed company raised £40m to part-fund the acquisition from a placing of 12.1m shares at 330p each with new and existing investors, which represented about 5.6% of its existing issued share capital, and the balance will be funded from a new $26.3m loan from Barclays as well as from existing cash resources.
Chairman Andrew Brode said: "We are delighted to be acquiring LUZ which, together with CTi, will strengthen the enlarged group as a leading player in the global Life Sciences translation space, with a significant presence across North America, Europe and Asia.
"Our Life Sciences activities will represent over 30% of the enlarged group's revenues, with strong margins and further opportunities for growth. The life sciences sector also provides the potential for the enlarged group to develop and expand its other services, especially in patent translation and foreign filing.”
Shares RWS Holdings were up 4.53% to 353.57p at 1022 GMT.