TRANSCOM ACQUIRES STOCKHOLM’S LARGEST INTERPRETATION FIRM CREATING PREMIERE TRANSLATION SOLUTIONS PROVIDER
Transcom WorldWide S.A. (‘Transcom’), the European CRM and collections specialist, today announced that its subsidiary Transvoice AB (‘Transvoice’) has acquired 100% of Stockholms Tolkförmedling Aktiebolag (‘Stockholms Tolkförmedling’ or ‘the Company’) for a cash consideration of SEK 24 million (€2.6 million), with a further maximum of SEK 4 million (€425,000) payable depending on performance over the next two years. Stockholms Tolkförmedling is the leading language interpretation agency in Stockholm and one of the largest players in the Swedish market. The Company reported revenues of SEK 60.9 million (€6.5 million) in 2005 and generated a pre-tax profit margin of 10% for the year. The purchase will be funded out of Transcom’s existing cash balances. A further consideration of up to SEK 4 million (€425,000) is payable in two instalments, in February 2007 and February 2008, subject to the Company meeting specific financial targets. The operations will be consolidated in Transcom’s accounts with effect from 1 January 2006. Senior management personnel will remain with the Company under the new ownership structure and the previous owners will also join the Board of Transvoice. Operating from Stockholm, Norrkoping and Malmo, Stockholms Tolkförmedling has more than 2,000 interpreters on its register. The Company is the second largest provider of interpretation services to the public sector in Sweden, having mediated millions of interpreting assignments on behalf of various authorities and organisations throughout the country. Keith Russell, President and CEO of Transcom, commented: “This deal transforms Transvoice into one of the largest interpretation providers in Sweden, with particular strength in the public sector. In addition to growing the Company’s existing business, Transcom also aims to realise the significant synergies between its call centre infrastructure and the interpretation business. By providing clients with translators through telephone lines and the internet, the efficiency of these services can be greatly improved and the costs substantially reduced. With many European countries now supplying translators for essential medical and legal services, we see tremendous growth opportunities for Transvoice in the coming years.” For further information please visit www.transcom.com or contact: Keith Russell, President & CEO: +352 27 755 000 Noah Schwartz, Investor & Media Enquiries: +44 20 7321 5032 About Transcom Transcom WorldWide S.A. is a rapidly expanding Customer Relationship Management (CRM) solution provider, with 48 service centres employing more than 11,700 people delivering services to 26 countries – Austria, Belgium, Croatia, Denmark, Estonia, Finland, France, Germany, Hungary, Italy, Latvia, Lithuania, Luxembourg, Morocco, Norway, Poland, Portugal, Romania, Spain, Sweden, Switzerland, the Czech Republic, the Netherlands, Serbia, the UK and Tunisia. The company provides CRM solutions for companies in a wide range of industry sectors, including telecommunications and e-commerce, travel & tourism, retail, financial services and utilities. Transcom offers clients a broad array of relationship management services, including inbound communication; telemarketing and outbound; Administrative Tasks; Web servicing; CRM Consultancy Service; Contract Automation; Credit Management Service; Legal Services; and Interpretation Services. Client programs are tailor-made and range from single applications to complex programs, which are offered on a country-specific or international basis in up to 33 languages. Transcom WorldWide S.A. ‘A’ and ‘B’ shares are listed on the Stockholmsbörsen O-List under the symbols TWWA and TWWB.