RWS Holdings to merge with SDL

The boards of RWS Holdings plc SDL plc have announced that they have reached agreement on the terms of an all-share combination of RWS and SDL.

According to the announcement on the RWS website, the combined company "will create a truly global provider of language services and technology. The Combined Group will be a broad-based, well-funded business benefitting from increased scale, superior capabilities, an expanded geographic footprint and a highly experienced management team."

The transaction puts shares of SDL at 907 pence and SDL’s existing issued and to be issued share capital at approximately £854 million (approximately $1.126 billion), representing a premium of 52% to SDL’s closing share price of 598 pence on  August 26 2020.

Through the deal, SDL shareholders will own approximately 29.5% and RWS Shareholders approximately 70.5% of the combined group.

Following additional steps to complete the deal, it is expected to close in Q4 2020.