Straker Ltd · ASX:STG
Straker — Merger or Acquisition (January 2021)
16 slides from Straker's merger presentation, Jan 21, 2021
Slide 1: LingoTek Acquisition
Straker Translations LingoTek Acquisition 21st January 2021 1
Slide 2: Disclosure Statement
Disclosure Statement This presentation is given on behalf of Straker Translations Limited ASX:STG (Company number NZ: 1008867 / AU: ARBN 628 707 399) Information in this presentation: All information in this presentation is current at 21 January 2021, • Is for general information purposes only, and
Slide 3: Deal - what
Deal - what Straker is purchasing US-based translation technology company Lingotek in a transformational acquisition. Lingotek had LTM revenues of NZ$11.2m (US$7.9m) for NZ$9.1m(US$6.47m) in a cash and stock deal. 3
Slide 4: Deal - why
Deal - why Why we are acquiring Lingotek - Key connector technology saving significant time and resources in planned R&D, some connectors will be used by IBM as we ramp up - Offer new enterprise translation relationships with major corporates - Provide critical mass in the major US market - Provide
Slide 5: Acquisition Highlights
Highlights Acquisition Highlights ‣ Unconditional agreement to acquire the assets of Lingotek for NZ$(US$6.47m) effective 1st Feb 2021 ‣ Brings 20 new Enterprise relationships into the Group including Nike, Acquia and Oracle ‣ LTM revenue of NZ $11.2m, Lingotek will contribute two months earnings to
Slide 6: Lingotek Acquisition continuing the Straker strategy of innovation and growth
Strategy Lingotek Acquisition continuing the Straker strategy of innovation and growth Lingotek adds SaaS Lingotek adds recurring revenue automation connectors and a significant corpus of Grow Repeating translation data assets Revenue A.I. Driven Technology Innovation Grow Customer Base Lingotek add
Slide 7: Market & Investment Opportunity
Market & Investment Opportunity Lingotek and Straker combined drive us to more into the scale disrupter zone Innovation Index Scale Zone Optimal Zone 40 Larger LSPs with global coverage but lacking $50m Revenue Dying Zone Tech Zone 20,000 LSPs Less/No tech innovation More tech innovation 7
Slide 8: M&A Acquisitions driving enterprise growth
M&A Acquisitions driving enterprise growth Lingotek is our 8th acquisition since 2016 Major European - As we acquire companies we Global technology automobile are gaining trusted supplier hardware provider manufacturer Global entertainment relationships with leading and amusement global companies an
Slide 9: Deal Metrics
Deal Information Deal Metrics ($USD) Price Revenue 0.82x $6.47m $7.9m $3.2m The upfront price is US$6.47 million for 0.82x of revenue Lingotek, 19% paid in LTM revenue of US$7.9m SaaS revenue STG stock Earn-out EBITDA $3.1m Lingotek expected to be Earn-out based on hitting EBITDA break-even in FY22
Slide 10: About Lingotek
About Lingotek 10
Slide 11: Lingotek Historical Timeline
Lingotek Historical Timeline Esri joins the client mix First to introduce Nike becomes connectors to Stevie Award Best New major SaaS Drupal Product or Service of the customer Lingotek founded as a marketplace pioneer for cloud-based Year - SaaS TMS technology New partnership First cloud based TMS w
Slide 12: Lingotek Straker Synergies
Lingotek Straker Synergies AI Driven Automation of Focus on Global Adaptive Post the Translation Services Edit For Speed Process Business and Efficiency Lingotek has had a focus on automation on ramps for content, Straker has had a core focus on translator efficiency through AI and a world leading g
Slide 13: Platform Synergies
Platform Synergies The Lingotek Translation Platform and the Straker RAY platform have strong synergies that combined will be world leaders in A.I. driven translation technology Lingotek’s wide range of connectors and content on ramps will drive faster and greater volumes of content into RAY. Many o
Slide 14: Lingotek Management Team
Lingotek Management Team Experienced management team to remain and drive the SaaS business unit Jeff Labrum Nick Ramond Brad Ross Greg Larsen CEO Chief Technology Officer Director of Product Director of Revenue • Lingotek founder; CFO and • Responsible for aligning all • 25 years of development • Mo
Slide 15: Economic Benefits
Economic Benefits ‣ Forecast EBITDA break-even first full year post acquisition ‣ SaaS revenue acquired at a highly competitive multiple ‣ Access to major accounts with untapped customer wallet ‣ Ability to sell SaaS products through our global network ‣ Expedites deployment of popular content conne
Slide 16: Thank You
Thank You TRANSLATIONS STG. ASX