Lionbridge Announces acquisition of application development and testing firm E5 systems US-Based Company with Strong China Operations Will Bolster Lionbridge's Offshore Delivery; Supports Lionbridge's Vertical Market Expansion in Hospitality and Financial Services Sectors
WALTHAM, Mass., Oct. 8, 2013 /PRNewswire/ -- Lionbridge Technologies, Inc. (Nasdaq: LIOX) today announced that it has acquired E5 Systems, a US-based, privately-held provider of application development and testing solutions. The addition of E5 will enable Lionbridge to expand its strong presence in China, meet growing demand for integrated onshore / offshore solutions and access E5's long-standing relationships with clients in the hospitality and financial services industries.
"Organizations across industries rely on our proven global program management models that deliver the optimal combination of skill, geography and cost for each business need, from business process crowdsourcing to real-time technology to offshore scale. The addition of E5 Systems will add further scale to our proven delivery capabilities in China and allow us to meet growing demand for reliable, secure offshore delivery," said Rory Cowan, CEO of Lionbridge. "We will build on E5's unique skills to broaden our development, testing and globalization capabilities into new markets and new applications."
E5 Systems combines US-based onsite program management and China-based delivery for application development and testing services. E5 Systems has qualified development and testing professionals in the US and in Jinan, China, which is located approximately 225 miles south of Beijing and approximately 500 miles north of Shanghai. The Company provides services for several long-standing clients including Hyatt Hotels, Interstate Hotels & Resorts, Deluxe Corporation and GuestMetrics.
Lionbridge is acquiring E5 Systems for a total estimated cash consideration of approximately $1.6 million, subject to adjustment for working capital and other matters, and an additional $2.15 million maximum earn-out potential which would be payable in cash over two years, subject to the attainment of certain annual revenue metrics.
Lionbridge expects the acquisition to be neutral to earnings in 2013 and 2014, including minimal acquisition and integration costs.
Lionbridge enables more than 800 world-leading brands to increase international market share, speed adoption of products and effectively engage their customers in local markets worldwide. Using our proprietary cloud technology platforms and our global crowd of more than 100,000 professionals we provide translation, online marketing, content management and application testing solutions that ensure global consistency and local relevance across all touch points of the customer lifecycle. Based in Waltham, Mass., Lionbridge maintains solution centers in 26 countries. To learn more, visit http://www.lionbridge.com.
This press release contains forward-looking statements that involve risks and uncertainties, including expectations for accretion, revenue and earnings related to the acquisition of E5 Systems in 2013 and 2014. Lionbridge's actual experiences, actions, financial and operating results may differ materially from those discussed in the forward-looking statements. Factors that might cause such a difference include the termination of customer contracts prior to the end of their term; integration expense; Lionbridge's dependence on clients' product releases and production schedules to generate revenues; the loss of a major client or customer; the size, timing and recognition of revenue from major clients; customer delays or postponements of services; risks associated with management of growth, transition and integration; the failure to keep pace with the rapidly changing requirements of its clients; Lionbridge's ability to attract and retain key personnel; costs associated with and consequential to the acquisition and integration of E5 and benefits realized from the acquisition; risks associated with competition and competitive pricing pressures; and Lionbridge's ability to forecast revenue and operating results. For a more detailed description of the risk factors associated with Lionbridge, please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2012 and subsequent filings with the SEC (copies of which may be accessed through the SEC's website at http://www.sec.gov.
Contact: Sara Buda, 781-434-6000, firstname.lastname@example.org
SOURCE Lionbridge Technologies, Inc.