Monday, February 18, 2008

Idiom bought by U.K. firm SDL for $21M

Idiom Technologies Inc., a maker of translation and localization management software, has been acquired by one of its largest rivals, SDL plc of Great Britain.

The deal calls for SDL to pay $21.7 million for Waltham-based Idiom, while also assuming debt and working capital of about $4.9 million. Idiom would become a subsidiary of SDL following the purchase, and Mike Iacobucci, CEO of Idiom, is expected to continue to serve in that roll, reporting to Mark Lancaster, chairman and CEO of SDL, according to SDL officials.

Idiom reported 2006 revenue of approximately $10 million, recording a loss of $5.3 million. Executives at SDL say they Idiom to break even in its first year under new ownership, and contribute positively thereafter.

Common Sense Advisory Inc., a globalization research firm in Lowell, said the deal gives SDL access to Idiom's global consultant and sales network, who would be working with both product lines including Idiom's software-as-a-service offering. Integration of the respective platforms is expected to be completed by 2010.

Idiom also brings in a list of high-profile customers, including Adobe Systems Inc., Cisco Systems Inc., Sun Microsystems Inc., eBay Inc., and the U.S. Internal Revenue Service.

Founded in 1998, Idiom is best-known for its WorldServer translation management system with 60 customers worldwide. Since its founding, the company has also raised $60 million in private funding from a number of investors, including Sigma Partners of Boston, Northbridge Venture Partners of Waltham and the investment arms of Oracle Corp. and Eastman Chemical Co.