RWS and SDL to combine and create ‘world's leading language services and technology group’

RWS and SDL to combine and create ‘world's leading language services and technology group’

AIM 50, RWS Holdings plc and Main Market listed SDL plc have announced that they have reached agreement on the terms of a recommended all-share combination. The combined group will be called RWS and will be listed on AIM. The deal is expected to be effected by way of scheme of arrangement.

The terms of the merger entitle SDL scheme holders to receive 1.2246 new RWS shares per SDL share, and values each SDL share at 907 pence per share – a 52% premium on SDL’s share closing price on 26 August. The deal, therefore, values the entire issued share capital of SDL at £854m, making it the fourth largest firm offer announced in 2020 to date.

The combined group is expected to be the ‘largest language services and software company in the world’, with an expanded geographical footprint across the US, UK, continental Europe, Asia, Canada and South America. Furthermore, the combined group ‘will serve an expanded blue chip customer base with limited overlap across its core markets, including 90 of the world's top 100 brands by value, all the top 10 pharmaceutical companies globally, many of the major West Coast technology businesses, and approximately half of the top 20 patent filers worldwide’.

The RWS board has expressed that they expect the combination to result in in double digit earnings per share accretion in the first full financial year post Completion’.

Related Articles:
Latest Articles:
About the author:

Market Tracker is a unique service for corporate lawyers housed within Lexis®PSL Corporate. It features a powerful transaction data analysis tool for accessing, analysing and comparing the specific features of corporate transactions, with a comprehensive and searchable library of deal documentation across 14 different deal types. The Market Tracker product also includes news and analysis of key corporate deals and activity and in-depth analysis of recent trends in corporate transactions.