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Telus to acquire Lionbridge AI
Posted on Friday, 06 November 2020 14:21
Telus International has agreed to acquire Lionbridge AI, a market-leading global provider of crowd-based training data and annotation platform solutions used in the development of artificial intelligent (AI) algorithms to power machine learning.
Under the terms of the deal, the Toronto-based buyer is offering CAD 1.20 billion (USD 916.21 million) consisting of debt and equity, subject to customary closing adjustments.
Closing is expected on 31st December 2020, subject to the usual raft of conditions and regulatory approvals.
The acquisition will be financed from Telus’ non-recourse credit facilities and funds from an additional equity capital contribution from Telus Corporation and funds affiliated with Baring Private Equity Asia.
Lionbridge AI is part of Lionbridge Technologies and is one of only two globally-scaled, managed training data and data annotation services providers in the world.
Data annotation is the process of labelling data to make it usable for AI systems and the group’s annotates data in text, images, videos and audio in more than 300 languages and dialects for some of the world’s largest technology companies in social media, search and mobile.
Lionbridge AI has posted a 29 per cent increase by revenue to CAD 260.00 million.
The company said it has been resilient in the face of Covid-19 and for the nine-month period ending 30th September 2020.
Darren Entwistle, chief executive of Telus, said: “Today’s announcement advances Telus’ commitment to harness the power of technology to provide outstanding customer experiences on a global basis, while accelerating the digital transformation and strategic growth journey of Telus International.
“The acquisition will add key capabilities and diversity to Telus International’s suite of next-generation digital solutions consistent with the ongoing execution of its growth agenda.
“We continue to move forward with our plans for the TELUS International IPO, which is targeted for the first quarter of 2021.”
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