Donnelley Financial Solutions Announces Sale of Language Solutions Business for $77.5 Million in Cash
July 16 2018 - 02:00AM
Business Wire
Transaction is consistent with Donnelley
Financial Solutions’ strategy to be a leader in technology enabled
global compliance and risk management solutions
Donnelley Financial Solutions (NYSE: DFIN) announced today that
it has entered into a definitive agreement to divest its Language
Solutions business to SDL (LSE: SDL.L) for $77.5 million on a cash
free, debt free basis with all consideration to be paid in
cash.
“This transaction is an important step in implementing our
strategy, and will allow us to better focus on our global
regulatory and compliance offerings,” said Daniel N. Leib, chief
executive officer of Donnelley Financial Solutions. “Giving effect
to the transaction, our expected year end leverage will be below
our long-term targeted leverage range of 2.25x to 2.75x debt to
EBITDA. Moving forward we will continue to take actions that
further position Donnelley Financial as a leading technology
enabled compliance and risk solutions provider for our clients
globally.”
SDL is a global innovator in language translation technology
with more than 25 years of experience. This agreement combines
Donnelley Language Solutions’ expertise in premium verticals and
heavily regulated markets with leading language services, with
SDL’s expansive operational footprint, digital capabilities and
leading translation technology.
“This is a compelling transaction for our business as it expands
our growth opportunities by joining forces with SDL, a
long-standing global leader in content management, language
services with industry leading technology,” said Christophe
Djaouani, senior vice president of Donnelley Language Solutions.
“As a combined entity, we will be able to create value for our
clients by offering industry leading solutions, an enhanced digital
experience and exceptional customer service.”
“The sale is a testament to the tremendous value of our talented
team of Language Solutions employees and to the strength of our
business,” concluded Leib.
On an annualized basis, this transaction is expected to decrease
Donnelley Financial Solutions’ annual revenue by approximately $80
million and annual non-GAAP adjusted EBITDA by approximately $8
million, inclusive of run-rate stranded cost of approximately $3
million. The company expects to utilize proceeds from the sale to
pay down debt under its revolving credit facility and Term Loan
B.
The transaction is expected to close by the end of July
2018.
Donnelley Language Solutions includes operations in 15 countries
with approximately 400 employees. The executive team of Language
Solutions will be joining SDL following the close.
About Donnelley Financial Solutions
With the right solutions in moments that matter, Donnelley
Financial Solutions (NYSE: DFIN) delivers risk and compliance
solutions that fuse deep industry experience, unparalleled service,
and elegant technologies to provide our clients with insights that
power their decisions and shape global markets. The company has
3,400 employees in 61 locations across 18 countries, serving
thousands of clients globally. For more information about Donnelley
Financial Solutions, visit www.dfsco.com or follow us on Twitter
@DonnelleyFin or on LinkedIn.
Use of Forward-Looking Statements
This news release may contain "forward-looking statements"
within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended, and the U.S. Private Securities Litigation Reform
Act of 1995. Readers are cautioned not to place undue reliance on
these forward-looking statements and any such forward-looking
statements are qualified in their entirety by reference to the
following cautionary statements. All forward-looking statements
speak only as of the date of this news release and are based on
current expectations and involve a number of assumptions, risks and
uncertainties that could cause the actual results to differ
materially from such forward-looking statements. Readers are
strongly encouraged to read the full cautionary statements
contained in Donnelley Financial Solutions’ filings with the SEC.
Donnelley Financial Solutions disclaims any obligation to update or
revise any forward-looking statements.
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Solebury Communications GroupSloan Bohleninvestors@dfsco.com
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