RWS Holdings nabs Corporate Translations for USD70m

RWS Holdings has acquired US-based life sciences translation and linguistic validation provider Corporate Translations Inc (CTi) for a cash consideration of $70m, which is expected to be "immediately and significantly" earnings enhancing.

RWS, a provider of intellectual property support services, said the deal, had fully completed and would complement its organic growth, enhance shareholder value and strengthen its presence in the life sciences sector.

In its latest audited financial statement for the last calendar year, Connecticut-based CTi showed revenues of $23m and adjusted earnings before interest, tax, depreciation and amortisation of $4.8m.

RWS said the deal will be funded by $25m from internal cash resources and $45m through a five-year loan provided by Barclays.

Chairman Andrew Brode said: “With its focus on supporting its clients in the delivery of their intellectual property pipelines, CTi is an excellent fit with RWS' leading position in intellectual property service provision.

"We look forward to building on CTi's strong reputation and financial track record, particularly as RWS adds its own life science division and client base, and provides a platform from which it can achieve further expansion into the European life science support services sector.”

At 1018 GMT, RWS shares were up 5.6% at 181.03p.