SDL buys machine translation firm

15th Jul 2010 07:20

Information management specialist SDL has purchased automated translation firm Language Weaver.SDL is paying $42.5m (£28.2m) in cash for the US firm, subject to adjustments for closing working capital and cash positions, with target cash in the business of $4m.The company said the acquisition will dilute earnings in 2011, due primarily to the amortization of intangibles created through the acquisition, but should be earnings enhancing thereafter. Language Weaver's unaudited gross assets at the end of calendar year 2009 were $9.3m. During 2009 Language Weaver's turnover was $12.2m and it made a pre-tax loss of $1m.SDL said the acquisition of Language Weaver's machine translation technology puts the company "firmly in place for ensuring the effective provision of secure multilingual content into the future's digital age.""Within the next 5 years we expect over 30% of all translated content to utilize machine translation in the process of translating one language to another. We regard Language Weaver as the best-in-class machine translation technology available in the world today," said Mark Lancaster, chairman and chief executive officer of SDL.