RWS, the leading patent and technical translations service provider, reported the acquisition of an initial one third interest in inovia Holdings Pty Ltd for a cash consideration of $5.8 million, together with agreement to buy the remaining share capital based on performance for up to $25.4 million.

Headquartered in New York, inovia is the largest non-law firm provider of international patent filing solutions globally. Its patented, web-based technology provides over 1000 law firm and corporate clients with cost effective processing of international patent applications, typically producing cost savings in excess of 30%. For the year ending June 2011, inovia achieved sales of $15.1 million (an increase of 33.5% over 2010). Its EBITDA remained marginally negative for the financial year but the business is expected to become profitable in the new financial year. There are significant cross selling opportunities.

RWS also announced that the final results to September 2011 are anticipated to show sales of at least £65 million (2010: £60.6 million), with profits in line with market expectations. Year end net cash was £25 million.

The RWS share price has increased by 45% over the last year.

RWS Holdings Plc is currently graded A by LCF Research. To learn more, follow the link.

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