Transaction is consistent with Donnelley Financial Solutions’
strategy to be a leader in technology enabled global compliance and risk
management solutions
CHICAGO--(BUSINESS WIRE)--
Donnelley Financial Solutions (NYSE: DFIN) announced today that it has
entered into a definitive agreement to divest its Language Solutions
business to SDL (LSE: SDL.L) for $77.5 million on a cash free, debt free
basis with all consideration to be paid in cash.
“This transaction is an important step in implementing our strategy, and
will allow us to better focus on our global regulatory and compliance
offerings,” said Daniel N. Leib, chief executive officer of Donnelley
Financial Solutions. “Giving effect to the transaction, our expected
year end leverage will be below our long-term targeted leverage range of
2.25x to 2.75x debt to EBITDA. Moving forward we will continue to take
actions that further position Donnelley Financial as a leading
technology enabled compliance and risk solutions provider for our
clients globally.”
SDL is a global innovator in language translation technology with more
than 25 years of experience. This agreement combines Donnelley Language
Solutions’ expertise in premium verticals and heavily regulated markets
with leading language services, with SDL’s expansive operational
footprint, digital capabilities and leading translation technology.
“This is a compelling transaction for our business as it expands our
growth opportunities by joining forces with SDL, a long-standing global
leader in content management, language services with industry leading
technology,” said Christophe Djaouani, senior vice president of
Donnelley Language Solutions. “As a combined entity, we will be able to
create value for our clients by offering industry leading solutions, an
enhanced digital experience and exceptional customer service.”
“The sale is a testament to the tremendous value of our talented team of
Language Solutions employees and to the strength of our business,”
concluded Leib.
On an annualized basis, this transaction is expected to decrease
Donnelley Financial Solutions’ annual revenue by approximately $80
million and annual non-GAAP adjusted EBITDA by approximately $8 million,
inclusive of run-rate stranded cost of approximately $3 million. The
company expects to utilize proceeds from the sale to pay down debt under
its revolving credit facility and Term Loan B.
The transaction is expected to close by the end of July 2018.
Donnelley Language Solutions includes operations in 15 countries with
approximately 400 employees. The executive team of Language Solutions
will be joining SDL following the close.
About Donnelley Financial Solutions
With the right solutions in moments that matter, Donnelley Financial
Solutions (NYSE: DFIN) delivers risk and compliance solutions that fuse
deep industry experience, unparalleled service, and elegant technologies
to provide our clients with insights that power their decisions and
shape global markets. The company has 3,400 employees in 61 locations
across 18 countries, serving thousands of clients globally. For more
information about Donnelley Financial Solutions, visit www.dfsco.com
or follow us on Twitter @DonnelleyFin or on LinkedIn.
Use of Forward-Looking Statements
This news release may contain "forward-looking statements" within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and the U.S. Private Securities Litigation Reform Act of 1995.
Readers are cautioned not to place undue reliance on these
forward-looking statements and any such forward-looking statements are
qualified in their entirety by reference to the following cautionary
statements. All forward-looking statements speak only as of the date of
this news release and are based on current expectations and involve a
number of assumptions, risks and uncertainties that could cause the
actual results to differ materially from such forward-looking
statements. Readers are strongly encouraged to read the full cautionary
statements contained in Donnelley Financial Solutions’ filings with the
SEC. Donnelley Financial Solutions disclaims any obligation to update or
revise any forward-looking statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180715005043/en/
Solebury Communications Group
Sloan Bohlen
investors@dfsco.com
Source: Donnelley Financial Solutions