- Acquisition of an established translation service provider with a high degree of digitalisation and automation
- Strategic move to develop a buy-and-build platform in a fragmented market
- Increase in the forecast for the 2022 financial year: Revenue to increase to 305-325 million euros with an expected EBITDA margin (adj.) of 9-10 %
Munich, 3 March 2022 - Yesterday, Blue Cap AG agreed to acquire a qualified majority stake of 74 % in Transline Gruppe GmbH (hereinafter "Transline") and its five operating subsidiaries against payment of a purchase price in the lower third of the double-digit million range. Transline is one of the major German translation service providers. The company employs more than 100 people at a total of 6 locations and works with around 5,000 specialist translators worldwide. In the past three years, revenue has increased by an average of 17 % annually to around 21 million euros (2021, preliminary). The seller is Lead Equities Group in Austria. The founder and current co-owner of Transline, Dr. Sturz, will continue to have a substantial stake of 26 % in the company. It is planned that the operational management team will acquire a stake of around 5 % in Transline from Blue Cap AG within the next few months. The acquisition is expected to be completed on 4 March 2022.
Transline invested heavily in the digitalisation of its business model in recent years and developed a leading workflow software that automates process steps. This significantly strengthens its competitive position by enabling a higher and faster processing of customer requests and leading to efficiency enhancements throughout the entire service provision process. In addition, Transline has recently placed a strategic focus on growing market segments through add-on acquisitions, especially in the medtech, pharmaceutical, e-commerce and software sectors. Long-standing and reliable relationships with around 500 customers underpin the profitable business model.
The new Blue Cap subsidiary operates in an attractive market environment whose structural growth is driven by increasing digitalisation and globalisation. In addition, the market for language services is very fragmented and therefore subject to strong consolidation pressure. This creates significant growth opportunities via buy-and-build measures designed to acquire new customers and unlock new sectors.
The acquisition represents a strategically important move for Blue Cap. Transline strengthens the diversification of the existing portfolio and, following last year's acquisition of HY-LINE, complements the Business Services division, which is to be expanded even further in the coming years together with the industry sector. Tobias Hoffmann-Becking, CIO of Blue Cap, comments: "Transline's business model benefits from megatrends such as digitalisation and artificial intelligence. The newly introduced software is the basis for organic growth and planned further expansion through acquisitions of smaller competitors. We are very excited about the new addition and look forward to continuing the journey together with a successful team." Dr Sturz, Founder and Managing Director of Transline: "We see further significant market opportunities in our business. In Blue Cap, we have found a strong partner with whom we can continue to forge a successful path."
The Management Board of Blue Cap AG is adjusting its forecast for the current financial year in light of the transaction. It now expects revenues of around ?305-325 million (previously: ?290-310 million) and an adjusted EBITDA margin of 9-10 % (previously: 8.5-9.5 %). The revenue and earnings forecast is subject to possible further coronavirus effects and M&A transactions. The repercussions of the Russia-Ukraine war have not yet been definitively assessed and may subsequently alter the forecast. Direct transactions with Russia account for well below 1 % of group sales, and the possible indirect impact on e.g. raw material procurement or supply chains is still unclear.
About Blue Cap AG
Blue Cap AG is a capital market-listed investment company founded in 2006 and headquartered in Munich. The company invests in medium-sized companies in the areas of production, trade and services of, with and for industrially manufactured physical goods. These are headquartered in the DACH region, typically generate revenue of between 30 and 80 million euros and have an intact core business. Blue Cap holds mostly majority stakes in eight companies in the adhesives technology, coating technology, plastics technology, production technology, medical technology and electrical engineering sectors. The companies in the Blue Cap Group develop independently and each pursue their own growth strategies. The group currently employs around 1,300 people in Germany and other European countries. Blue Cap AG is listed on the open market (Scale, Frankfurt and m:access, Munich; ISIN: DE000A0JM2M1; ticker symbol: B7E). www.blue-cap.de
Contact: Blue Cap AG, Lisa Marie Schraml, Investor Relations & Corporate Communications, Tel. +49 89 288909-24; firstname.lastname@example.org
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