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Follow UsWALTHAM, Mass.: Lionbridge Technologies, Inc., a globalisation and offshoring services provider, today announced the completion of its acquisition of Bowne Global Solutions, a division of Bowne & Co., Inc.
Both Lionbridge and Bowne Global Solutions (BGS) provide globalization services that enable organizations to release products and content that meets the linguistic, technical and cultural requirements of customers, partners and employees worldwide.
The acquisition was completed on September 1, 2005. Under the Agreement, Bowne & Co., Inc., the prior parent company of Bowne Global Solutions, received $130 million in cash, and 9.4 million shares of Lionbridge common stock, for a total purchase price of approximately $193 million, excluding cash of $11.5 million acquired with the business.
The transaction pairs two leading organizations in the estimated $6 billion globalization outsourcing industry, creating a $400 million provider with global scale across more than 25 countries and more than 500 customers.
Bowne Global Solutions will be re-branded as Lionbridge.
"This combination will provide our collective clients with the quality, capacity, and technology-driven processes that solve their global technology and content requirements," said Rory Cowan, CEO of Lionbridge.
Lionbridge also reiterated its outlook for the combined company. The transaction is expected to be accretive to Lionbridge's earnings within the first quarter of combined operations and thereafter, excluding the impact of transaction-related expenses and restructuring.
The combined company expects to realize cost synergies of between $15 and $20 million in 2006. Lionbridge anticipates revenue of between $400 and $430 million for 2006.
Excluding restructuring, financing expenses and debt repayment, Lionbridge expects to generate cash flow from operations of $35 to $45 million and earnings per share of between $0.40 and $0.55 within the first full fiscal year of consolidated operations, based on approximately 60 million weighted average fully diluted common shares outstanding.