Bridgepoint to acquire LanguageWire from Catacap

Catacap first invested in LanguageWire in May 2017, deploying equity via Catacap I. The 2012-vintage fund backs Danish SMEs and held a final close on its DKK 1bn (EUR 134.5m) hard-cap in September 2014.

Catacap held a 64% stake in the company, according to its website.

A report from Danish publication Børsen stated that LanguageWire could be valued at DKK 1bn-1.5bn (EUR 132m-202m), noting that it was valued at EUR 27m upon its acquisition by Catacap in 2017.

During the investment period, Catacap supported LanguageWire with add-on acquisitions, as well as strengthening its management and integrating AI into its product, the GP said in a statement. LanguageWire acquired Danish marketing and proofing software Frontlab in March 2018, followed by Belgian market peer XPlanation in 2018. LanguageWire's revenues have more than doubled and its earnings have quadrupled since 2017, Catacap said in the same statement.

Bridgepoint is investing in LanguageWire via its Development Capital strategy, according to a statement. Bridgepoint Development Capital IV held a final close in September 2020 on GBP 1.5bn. The fund makes equity investments of GBP 20m-100m in lower-mid-market companies with enterprise values of EUR 30m-150m. It intends to back 15-20 companies and has so far acquired UK-based pharmaceutical intelligence, insights and product strategy company Prescient Healthcare, as well as digital transformation specialist IDHL.

Following Bridgepoint's investment, LanguageWire intends to grow organically and through acquisitions, according to a statement.

The deal is expected to close in September 2021.

Bridgepoint listed on the London Stock Exchange at a GBP 2.88bn market capitalisation in July 2021, as reported. The GP expects that the listing will allow it to invest in the next generation of its funds, as well as to launch new organic strategies. The firm also intends to assess inorganic acquisition opportunities and to take advantage of the greater flexibility offered by the listed structure, according to a statement issued at the time.

Company
Founded in 2000, LanguageWire was originally a translation platform, subsequently developing its software to allow businesses to manage and produce global content in multiple languages. Its software facilitates the production and integration of content, as well as offering text editing and voiceover services. Its clients include Nissan, Bosch and L'Oréal, according to its website. LanguageWire has 253 staff and is headquartered in Copenhagen.

According to its latest annual report, LanguageWire posted 2020 revenues of DKK 433m (EUR 58.2m), versus DKK 420m (EUR 56.5m) in 2019, DKK 273m (EUR 36.7m) in 2018 and DKK 104m (EUR 13.9m) in 2017, the year of Catacap's initial investment.

The company generated EBITDA of DKK 59m (EUR 7.9m) in 2020, up from DKK 32m (EUR 4.3m) in 2019, DKK 25m (EUR 3.4m) in 2018, and DKK 13m (EUR 1.7m) in 2017. The company currently posts revenues of more than EUR 60m, according to a statement from Bridgepoint.

People
Bridgepoint – Johan Dahlfors (partner)
Catacap – Rasmus Lokvig (partner).
LanguageWire – Søren Bech Justesen (CEO); Jens Harsaae (chair).

Advisers
Equity – Accura (legal); Alantra (corporate finance); Alvarez & Marsal (financial due diligence, tax); Anthesis (ESG due diligence); Intechnica (technology due diligence); Slator (commercial due diligence).
Vendor – EY (corporate finance); Gorrissen Federspiel (legal); Deloitte (financial due diligence).

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