RWS acquires Propylon in EUR 30m deal
By Josh White
Date: Wednesday 12 Jul 2023
(Sharecast News) - Language, content and intellectual property specialist RWS Holdings announced the acquisition of Propylon Holdings for €30.1m on Wednesday.
The AIM-traded firm said the deal, on a cash-and-debt free basis, included deferred payments of €6.45m, due on the first and second anniversary of completion, subject to the Propylon management team remaining in place.
Propylon, base in Dublin, offers a component content management system (CCMS) used by governments, standards bodies, legal publishers, and regulated firms to simplify the complexities involved in drafting, managing, publishing, and updating legal and legislative content.
RWS said its unique solution allows for authoring through Microsoft Word, providing a user-friendly experience.
Propylon's clients include several US state legislatures, national parliaments, standards bodies, and global regulated professional services organisations.
The board said the acquisition would enable RWS to enhance its integrated localisation capabilities and serve a broader range of clients.
Propylon's CEO John Harrington would continue to lead the company and capitalise on its consistent year-on-year revenue growth and strong cash generation.
It reported $12.7m in revenue for the year ended 31 December 2022, representing a 13.4% increase from the prior year.
RWS said it was projected to achieve revenue growth of about 30% for the current year, with an EBITDA margin close to 25%.
The acquisition would be financed using RWS' existing cash resources and bank facilities.
"Propylon is a pioneer in its industry and has hugely helped its clients to manage the way they author, publish and comply with laws and regulations," said chief executive officer Ian El-Mokadem.
"The synergies between our organisations come from our ability to combine offerings, expand our geographical reach and bring new propositions to our global client base.
"Today's announcement supports our medium to long-term growth strategy and signals our intention to remain at the forefront of the structured content market."
At 1023 BST, shares in RWS Holdings were up 4.46% at 243.4p.
Reporting by Josh White for Sharecast.com.
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