Lionbridge Technologies buys VC-backed E5 Systems

Lionbridge Technologies said Wednesday that it has acquired E5 Systems for a total estimated cash consideration of approximately $1.6 million and an additional $2.15 million maximum earn-out potential that would be payable in cash over two years. Based in Sterling, Virginia, E5 Systems, which was backed by Bain Capital Ventures and G-51 Capital Management, is a provider of application development and testing solutions.

PRESS RELEASE

WALTHAM, Mass., Oct. 8, 2013 /PRNewswire/ — Lionbridge Technologies, Inc. (LIOX) today announced that it has acquired E5 Systems, a US-based, privately-held provider of application development and testing solutions. The addition of E5 will enable Lionbridge to expand its strong presence in China, meet growing demand for integrated onshore / offshore solutions and access E5s long-standing relationships with clients in the hospitality and financial services industries.
“Organizations across industries rely on our proven global program management models that deliver the optimal combination of skill, geography and cost for each business need, from business process crowdsourcing to real-time technology to offshore scale. The addition of E5 Systems will add further scale to our proven delivery capabilities in China and allow us to meet growing demand for reliable, secure offshore delivery,” said Rory Cowan, CEO of Lionbridge. “We will build on E5s unique skills to broaden our development, testing and globalization capabilities into new markets and new applications.”
E5 Systems combines US-based onsite program management and China-based delivery for application development and testing services. E5 Systems has qualified development and testing professionals in the US and in Jinan, China, which is located approximately 225 miles south of Beijing and approximately 500 miles north of Shanghai. The Company provides services for several long-standing clients including Hyatt Hotels, Interstate Hotels & Resorts, Deluxe Corporation and GuestMetrics.
Lionbridge is acquiring E5 Systems for a total estimated cash consideration of approximately $1.6 million, subject to adjustment for working capital and other matters, and an additional $2.15 million maximum earn-out potential which would be payable in cash over two years, subject to the attainment of certain annual revenue metrics.
Lionbridge expects the acquisition to be neutral to earnings in 2013 and 2014, including minimal acquisition and integration costs.
About Lionbridge
Lionbridge enables more than 800 world-leading brands to increase international market share, speed adoption of products and effectively engage their customers in local markets worldwide. Using our proprietary cloud technology platforms and our global crowd of more than 100,000 professionals we provide translation, online marketing, content management and application testing solutions that ensure global consistency and local relevance across all touch points of the customer lifecycle. Based in Waltham, Mass., Lionbridge maintains solution centers in 26 countries. To learn more, visit http://www.lionbridge.com.