Summa Linguae announces agreement with investor for a capital increase to fund acquisitions
Disclosure of delayed confidential information and convocation of the general meeting
The Management Board of Summa Linguae S.A. with its registered office in Kraków and listed on the New Connect stock exchange in Warsaw announced today that it has concluded a letter of intent with the V4C Poland Plus Fund (V4C) to acquire existing and newly issued shares in the Company, subject to the completion of conditions precedent set out in the agreement. The funds raised in the share issue process will be used for the planned acquisition of two companies in North America, which the Company plans to complete by December this year.
According to the announcement convening the General Meeting, the Company may issue up to 3,123,737 shares at PLN 13.50 per share. Summa Linguae will thus raise approximately PLN 42m in new capital, valuing the Company at above PLN 100m. In addition, in the current report, the Company indicates that V4C may repurchase a number of existing shares in the Company’s share capital, resulting in majority position in the Company.
The funds raised by the Company will be used to finance two acquisitions in the North American market. Summa Linguae has reported on both acquisitions in previous current reports.
“It seems that acquiring a partner in the form of V4C and further dynamic development through acquisition, especially on the US market, is the best strategy to push the company forward,” stated Krzysztof Zdanowski, the CEO and a shareholder of Summa Linguae.
According to the available announcements, the Company will spend USD 10.5 million on both acquisitions. The total revenue of the acquired companies and the Company for 2018 is approximately PLN 65 million. The Company has published a forecast for 2019, which provides for over PLN 50 million in revenues. This indicates fast, over 35%, organic growth.
The funding and acquisition transactions are scheduled to take place in early December 2019.
EY is advising the Company on the review of strategic options and on obtaining the financing. Chabasiewicz, Kowalska i Partnerzy are the legal advisers in this process.
Information on acquired companies
The American company provides translation and localization services mainly for the life science industry – with particular emphasis on the medical devices sector. It operates mainly in the USA. The company uses a web-based platform to manage the process of ordering and coordinating work.
The Canadian target is a technology company, which provides services mainly on the American market. The company specializes in building solutions for annotation, collection and processing of multilingual data in many formats (voice, image, text) used mainly for training AI algorithms. The company is a leading provider of such solutions to the world’s largest IT and new technology companies and manages a crowd of 40k+ resources around the globe.
“The acquisitions in the USA and Canada complement our existing global presence and business lines and give us access to advanced data collection and annotation technology,” concludes Zdanowski.
Information about Summa Linguae Technologies
Summa Linguae Technologies is a Language Technology Service Provider (LSP) specializing in partnering with content-rich global companies.
Solutions designed by the company (multilingual content management) can be divided into three areas:
- Technology-enabled localization services
- Managed services
- Data services
The company services clients from the IT, E-Commerce, Life Science and E-Learning industries and employs about 150 employees in 7 countries. Summa Linguae has developed its own technology for automation of workflows and integrations with customers (TMS), as well as a number of proprietary IT solutions supporting the implemented solutions.
Since 2018, the Company has been ranked amongst the world’s 100 largest companies in the industry, and for the last 3 years, in the industry’s top 5 fastest growing – according to Nimdzi and Common Sense Advisory rankings. www.summalinguae.com
Information about V4C
The V4C Poland Plus Fund S.C.A. SICAV-FIAR is a Luxembourg registered investment vehicle whose general partner is part of Value4Capital, a lower mid-market private equity firm focused on Poland and the other Central European EU member states. www.value4capital.com
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