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SDL To Acquire Donnelley Language Solutions For $77.5 Mln - Quick Facts

SDL plc (SDL.L) announced it has agreed to acquire the business and assets of Donnelley Language Solutions on a cash-free, debt-free basis for a cash consideration of $77.5 million (60.1 million pounds) from Donnelley Financial Solutions Inc. (DFIN).

Donnelley Language Solutions was established in 2002 within R.R. Donnelley. In 2013 DLS became a division of Donnelley Financial Solutions Inc., providing translation, creation and management of content services. Donnelley Financial Solutions Inc.'s business, including DLS, was demerged from R.R Donnelley in 2016. DLS has approximately 400 employees and utilises freelancers and third-party agencies to provide its translation work. It operates from 15 countries across North America, Europe and Asia, including offices in key financial locations including London, New York and Hong Kong. In the year to 31 December 2017, Donnelley Language Solutions delivered approximately 5 percent revenue growth, generating revenues of $71.4 million and adjusted EBITDA of $5.8 million.

SDL proposes that the acquisition will be funded through the drawdown on new debt facilities and a proposed placing of up to 8,234,400 new ordinary shares of 1 pence each in the capital of SDL, representing approximately 10 percent of the existing issued share capital of the company, at a price of 440 pence per share to raise gross proceeds of up to 36.2 million pounds. The placing is being conducted by means of an accelerated bookbuild process.

SDL expects the acquisition and the placing taken together to be earnings enhancing in the first full year of ownership, the year ending 31 December 2019.

by RTTNews Staff Writer

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