This excerpt taken from the LIOX 8-K filed Sep 7, 2005.
Lionbridge Completes Acquisition of Bowne Global Solutions
WALTHAM, Mass. September 1, 2005 Lionbridge Technologies, Inc. (Nasdaq: LIOX), a leading provider of globalization and offshoring services, today announced the completion of its acquisition of Bowne Global Solutions, a division of Bowne & Co., Inc. (NYSE: BNE). Both Lionbridge and Bowne Global Solutions (BGS) provide globalization services that enable organizations to release products and content that meet the linguistic, technical and cultural requirements of customers, partners and employees worldwide.
The acquisition was completed on September 1, 2005. Under the Agreement, Bowne & Co., Inc., the prior parent company of Bowne Global Solutions, received $130 million in cash, and 9.4 million shares of Lionbridge common stock, for a total purchase price of approximately $193 million, excluding cash of $11.5 million acquired with the business.
The transaction pairs two leading organizations in the estimated $6 billion globalization outsourcing industry, creating a $400 million provider with global scale across more than 25 countries and more than 500 customers. Bowne Global Solutions will be re-branded as Lionbridge.
This combination will provide our collective clients with the quality, capacity, and technology-driven processes that solve their global technology and content requirements, said Rory Cowan, CEO of Lionbridge. Because of the favorable structure of this transaction, our previously announced financial commitments for cost synergies will be achieved primarily through consolidation of redundant back office expenses. Clients large and small will benefit as we leverage a single, unified global infrastructure across a greater volume of client programs. We are maintaining stability and excellence in all client delivery.
Lionbridge also reiterated its outlook for the combined company. The transaction is expected to be accretive to Lionbridges earnings within the first quarter of combined operations and thereafter, excluding the impact of transaction-related expenses and restructuring.
The combined company expects to realize cost synergies of between $15 and $20 million in 2006. Lionbridge anticipates revenue of between $400 and $430 million for 2006. Excluding restructuring, financing expenses and debt repayment, Lionbridge expects to generate cash flow from operations of $35 to $45 million and earnings per share of between $0.40 and $0.55 within the first full fiscal year of consolidated operations, based on approximately 60 million weighted average fully diluted common shares outstanding.
As we bring our organizations together, we continue to be delighted by the complementary nature of our two businesses. Our geographic strengths are complementary, our client bases are complementary and, most importantly, our core values are aligned. As a result, the integration of our two businesses is running smoothly, continued Cowan.
As we look to the future, it is clear that Lionbridges ability to execute both code and content programs for our clients will continue to separate us from our competition and allow us to establish clear leadership in the growing IT services market. By integrating global scale, technology, offshore delivery and proven program management into one unified service delivery platform, Lionbridge is providing the industrys most advanced, cost-effective solution for the development, deployment and maintenance global content and technology.