Proventis supports sale of German tsd to Spanish SeproTec
Munich — SeproTec Multilingual Solutions has acquired 100% of the shares in tsd Technik-Sprachendienst GmbH from Dina Freibott (photo), who has developed the company over the past 30 years into one of the world’s 30 leading language service providers based in Germany. Dominique Puls and Stefan Puls as tsd management team will keep their roles in the company as managing directors and will be part of the future setup of SeproTec.
Proventis Partners exclusively advised tsd Technik-Sprachendienst GmbH, Cologne/Germany, on the sale to SeproTec Multilingual Solutions, Madrid/Spain.
McDermott Will & Emery advised the shareholder of tsd Technik-Sprachendienst GmbH on the sale of the company to SeproTec Multilingual Solutions of Spain.
The role of Proventis Partners
Proventis Partners acted as exclusive M&A advisor to the shareholder, Dina Freibott (photo) and her management team, consisting of Dominique and Stefan Puls, on the sale of tsd. The consulting services included the selection of potential buyers, discussions and negotiations with the buyer, the coordination of the due diligence as well as the structuring and negotiation of the economic terms of the executed share deal. The transaction team of Proventis Partners consisted of Rainer Wieser (Partner, Munich), and Andreas König (Director, Munich).
The LSP market
According to an analysis of the LSP market conducted by Proventis Partners, the industry is facing a surge in supply as consumer demand for faster, more accessible media and other types of localization services increases. There are six technology trends: machine translation (MT), automated workflows (AW), automated quality assurance (AQA), translation memory ™, translation management systems (TMS), and artificial intelligence (AI)-based systems. There are two main reasons for this: decreasing profit margins and the need for faster turnaround of translation projects. Technology enables a variety of tools and services that can increase operational efficiencies to counteract the continual price erosion in the marketplace, largely due to the proliferation of streaming services and the increasing volume and speed at which audio, visual and textual content is consumed in multiple languages around the globe.
Transaction analyses of the last three years underscore these trends: In 71 mergers and acquisitions and private placements, the total volume of language technology transactions amounted to EUR 1.2 billion. Cross-border activity in the sector remains strong, with 41% international investment from 24 buyer nations in 22 target countries. Most transactions were made in the USA, China, Japan and Israel. Nearly two-thirds of all transactions in the language technology sector are private placements, with the remainder being mergers and acquisitions, ranging from the largest deals of around EUR 800 million to smaller investment rounds of EUR 10,000.
SeproTec Multilingual Solutions is a multilingual service provider ranked among the top 30 language service providers in the world. SeproTec, founded in 1989, is one of the world’s largest providers of translation and interpreting services and has been part of the portfolio of Spanish private equity investor Nazca Capital since fall 2021. The acquisition of TSD marks the company’s entry into the German market.
Founded in 1978 and headquartered in Cologne, Germany, tsd Technik-Sprachendienst GmbH has been successfully operating in the translation and localization industry for over 45 years. With personal and comprehensive services, tsd has become an established and experienced provider of a wide range of language services in Germany and worldwide.
tsd pursues a holistic service approach that goes beyond the standards of a classic translation agency. The company’s core competencies are multilingual projects: Translation, review, validation, terminology, MT solutions, post-editing, transcreation, language consulting. Innovative and efficient processes in areas such as quality assurance (DIN ISO 900, ISO 17100 and ISO 18587, ISO 27001) and technology characterize the working methods of tsd. In particular, the in-house team of linguists enables tsd to cover complex customer requests, respond quickly and flexibly, and provide high quality services. A close and transparent customer relationship, coupled with customized, efficient processes, is part of tsd’s self-image. www.tsd-int.com
Advisor to the shareholder of tsd Diana Freibott: McDermott Will & Emery
Dr. Nikolaus von Jacobs (Corporate/M&A, lead), Nina Siewert, Marcus Fischer (Counsel; both Tax Law, both Frankfurt), Dr. Philipp Schäuble (Labor Law); Associates: Matthias Weingut, Dr. Robert Feind, LL.M., Dr. Fabian Appadoo, Sebastian Gerstner (all Corporate/M&A)
About Proventis Partners
Proventis Partners is a partner-led M&A advisory firm whose clients include a majority of mid-sized family businesses, corporate subsidiaries and private equity funds. With more than 30 M&A advisors, Proventis Partners is one of the largest independent M&A consultancies in the German-speaking region and looks back on more than 20 years of M&A experience and well over 300 completed transactions. The M&A consultants with offices in Düsseldorf, Hamburg, Munich and Zurich are active in the sectors Industrials & Chemicals, Business Services, Consumer & Retail, TMT, HealthCare and Energy & Sustainability. Exclusive membership in Mergers Alliance — an international partnership of leading M&A specialists — enables Proventis Partners to assist clients in 30 countries in key markets worldwide. The members of the Mergers Alliance, with its more than 200 M&A professionals, provide Proventis Partners and thus its clients with unique access to local markets in Europe, North America, Latin America, Asia and Africa.