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- Straker Translations (STG) will acquire Belgium-based business IDEST for €1.75 million (A$2.75 million)
- The translation services platform has entered into a biding agreement to acquire the fellow translator via cash and shares
- Specifically, €1.5 million (A$2.36 million) in cash and €250,000 (A$392,000) in shares will be handed over, with each STG share worth $1.48
- Straker argues the acquisition will extend its presence in Europe and offers synergies, with STG to pay an extra €2.5 million (A$3.93 million) if set revenue targets are hit
- Shares in Straker Translations are up 3.23 per cent at $1.60 per share
Straker Translations (STG) has announced it will acquire Belgium-based business IDEST for €1.75 million (A$2.75 million).
The translation services platform has entered into a binding agreement to acquire the fellow translator under a cash and shares deal.
Specifically, Straker will pay €1.5 million (A$2.36 million) in cash and €250,000 (A$392,000) in shares to IDEST.
Each share is worth $1.48 and all of the STG shares to be issued to the Belgium translation business will be issued under the company’s existing capacity.
In addition to this, Straker is also on the line to pay an extra €2.5 million (A$3.93 million) to IDEST if set revenue targets are hit during the first two years post-acquisition.
Explaining why the business wants to buy IDEST, Founder Grant Straker said the buy would extend its presence in Europe and offers product synergies.
“We have been talking to IDEST for several years as we recognised the strong standing, they have with global institutions and that their long experience and our technology solutions and global reach would be of value to their customers,” he said.
“It’s fantastic that the stars have aligned to enable this transaction and for us to build on the great work of the founders over the past 30 years.
“We have recently setup an office in Amsterdam and combined with IDEST in Brussels will give us a very strong offering in the Benelux region.”
The acquisition is set to be funded via existing cash reserves, with Straker expecting to bring in more than $47 million in revenue over FY22.
Shares in Straker Translations were up 3.23 per cent at $1.60 per share during midday trade.
