Artificial intelligence translation system management company Memsource and its majority shareholder The…
Artificial intelligence translation system management company Memsource and its majority shareholder The Carlyle Group have bought a majority stake in German competitor Phrase.
White & Case acted as legal counsel to Memsource on the transaction, the first deal it has made since NASDAQ-listed The Carlyle Group first invested in Memsource, last year.
Prague-headquartered Memsource serves international companies and the language services sector to automate the translation of high volumes of content which is in different languages. Like the competitor it is purchasing, Phrase, it makes the translation of content easier and more efficient by using digital and artificial intelligence (AI)-powered products.
Memsource’s translation software is used by companies including Uber, Zendesk, Supercell, and Vistaprint.
Hamburg-headquartered Phrase has a cloud-based offering which can be used for the localisation of software, websites and mobile apps, allowing businesses and other customers to translate content at scale. In particular, Phrase serves those in the automotive and financial services sectors, with customers including Lufthansa Systems and Pizza Hut Digital Ventures.
The transaction will expand Memsource’s product portfolio and customer reach, and also allow it to expand its operations into Germany, where it has not had a presence until now.
Following Memsource’s acquisition of Phrase, Phrase’s management team, comprising its three founders, Wolfram Grätz, Frederik Vollert and Tobias Schwab, will still be shareholders in the company.
“Having established ourselves as a pioneer in software localization, partnering with Memsource and Carlyle is the next logical step for the company. We have a cross-industry customer base from the automotive to the financial sector and many of them are asking us about our plans to support additional localisation use cases” said Grätz in a statement.
A managing director in Carlyle Europe Technology Partners’ advisory team, Fernando Chueca, added that the acquisition will provide Memsource “an attractive entry point to the German market and access to [Phrase]’s highly complementary product suite and established customer base”, also stating that “the enlarged group is uniquely positioned to establish itself as a leader in translation management systems, enabling sophisticated software localisation across international markets”.
White & Case’s advisory team was led by London partner Kenneth Barry, who was supported by Will Smith and Bodo Bender, partners in London and Frankfurt, respectively, as well as various associates.
It was reported last year that the AI and machine learning market Machine learning market is expected to reach USD 96.7 billion by 2025.