Press release: RWS Holdings plc, a provider of intellectual property support services (patent translations, international patent filing solutions and searches), commercial translations and linguistic validation, is to acquire LUZ, Inc., a US based life sciences language services provider for $82.5 million. RWS is placing 12.1 million new Ordinary Shares to raise £40 million to part-fund the Acquisition. The balance will be funded from a new $26.3 million banking facility with Barclays Bank as well as existing RWS cash resources.The acquisition is expected to complete on 17 February 2017 following completion of the Placing.
Based in San Francisco with around 100 employees, LUZ is a life sciences translation provider, specialising in medical devices and regulatory activities. LUZ services a number of the world’s leading pharmaceutical and medical device manufacturers. Services include translation, desktop publishing, client review coordination, and project management.
In the year to 31 December 2016, LUZ delivered revenue of $29.2 million (2015: $23.7 million; 2014: $21.2 million) and operating profit of $7.7 million (2015: $3.6 million; 2014: $3.4 million).
The operational management team of LUZ is expected to continue in current roles; the founders and current owners will exit in full after a short transition period.
Andrew Brode, Chairman of RWS, commented: “We are delighted to be acquiring LUZ which, together with CTi, will strengthen the Enlarged Group as a leading player in the global Life Sciences translation space, with a significant presence across North America, Europe and Asia. We are also pleased with the level of support we have received from existing shareholders and new institutional investors in the Placing.”