Straker in binding agreement to acquire Belgium-based IDEST

Grant Straker, Chief Executive Officer, Straker Translations

Straker Translation, a technology-driven translation services platform has entered into an agreement with IDEST to acquire 100% of the IDEST shares of cash and share consideration.

IDEST, based in Brussels, Belgium and was founded in 1990, has focused on serving international institutions with state-of-the-art, tailor-made translation services.

IDEST has 18 employees. The share purchase agreement is effective from 1 January 2022 . Completion of the transaction is not subject to any conditions precedent.

Strategic benefits for Straker

The acquisition consolidates and extends Straker’s presence in the multi-billion-dollar European translation market, establishing new relationships with leading global institutions, including the European Commission, European Parliament, UNESCO, and the United Nations.

It also offers Straker acquisition synergies, including the gains that will come from the integration of the RAY Ai- powered translation platform into IDEST.

Often IDEST have only been dealing with central European languages and through Straker will be able to offer a much wider range of language solutions to their customers.

The transaction will materially boost Straker’s revenue and is EBITDA positive.

Founder and Chief Executive Grant Straker said regarding the proposed acquisition, Straker has adopted NZD/EU 0.603c as a currency rate assumption for this transaction.

“We have been talking to IDEST for several years as we recognised the strong standing, they have with global institutions and that their long experience and our technology solutions and global reach would be of value to their customers.”

“It’s fantastic that the stars aligned to enable this transaction and for us to build on the great work of the founders over the past 30 years. We have recently setup an office in Amsterdam and combined with IDEST in Brussels will give us a very strong offering in the Benelux region.”

Founder and Chief Executive of IDEST, Jean-paul Dispaux, made the following remarks.

“We are very happy with Straker acquiring IDEST, as they were our top choice for an acquirer given their technology, global services reach and team and culture fit.”

“I first met Grant Straker in 2017 when we talked about being acquired, we told him we would grow our business and he outlined the vision he had for the industry and their technology.”

“Four years later and we have both achieved exactly what we said we would do, and this has built a good deal of trust that we can take forward as we integrate and expand our business in global institutions, which is a significant business opportunity.”

Transaction detail of Straker acquisition of IDEST

Straker has agreed to an upfront payment on completion of €1.75 million (NZ$2.902 million2), for IDEST, comprising  €1.5 million in cash and €250 thousand in shares at transaction completion in Straker ordinary shares at an issue price of AU$1.48 per share.

The shares will be issued under the Company’s 15% placement under Listing Rule 7.1.

Straker has also agreed to pay additional consideration to IDEST’s vendors of an additional EUR€2.5m over two years, which is contingent on hitting revenue growth targets.

The Company believes this structure strongly aligns the vendors with the ongoing success of the transaction. The acquisition is to be funded via existing company cash reserves.

IDEST’s management team, CEO, will continue with the IDEST business after acquisition and will continue to manage IDEST operations from IDEST’s Belgium-based head office.

Straker financial projections

At its half year report Straker reconfirmed guidance of more than NZ$50m revenue for FY22.

Trading through Q3 has been very strong and the acquisition of IDEST will also positively impact on revenue and EBITDA for Q4 FY22. Straker will give an update on guidance for FY22 at our 4C cashflow release towards the end of January.