45.7% of Language Companies are Looking to Invest, Reports Nimdzi Insights
45.7% of respondents stated that they are looking for companies to acquire, which is up 12.0% in comparison to last year’s results.
Reports from the Nimdzi 100 show the continued gain in momentum for investments and mergers and acquisitions (M&A) in 2021.
The niche space, known to be impervious to crises, is the powerhouse for international communication through translation, subtitling, dubbing, transcreation, and other language services.
The market report, made available this week as a PDF, highlights the continued growth of M&A and investment activity that is incentivizing mid-size companies to sell their businesses. This industry trend is causing a decrease in the supply of those midsize language service providers (LSP), therefore increasing the price that the companies are selling at. The surprisingly large increase in the market price has brought more attention to the language industry, increasing the number of investors and private equity firms looking to acquire.
Renato Beninatto, Co-Founder of Nimdzi Insights states, “As private equity money flows into language services, we see some consolidation not only at the top of the ranking. M&A is happening in all segments and all geographies for two main reasons: the language industry continues growing and the margins are very good."
Data from the annual Nimdzi Insights report also shows that:
45.7% of respondents stated that they are looking for companies to acquire, which is up 12.0% in comparison to last year’s results.
In addition, 26.4% are looking to sell, which is an increase of only 2.5% as compared to 2021 (confirming once more that there are fewer companies that want to sell than want to buy).
The number of companies stating they are not thinking about M&A at all has decreased by 8.2%.
The full report is read by localization buyers, investors, savvy job seekers, and analysts; it can be downloaded here.
About Nimdzi Insights
Nimdzi Insights is an international market research and consulting firm, based in Seattle, Washington. Nimdzi advises on mergers and acquisitions, investments in the language services and localization industry, localization programs, and provides business resources for global professionals.
Paige Wastie
Nimdzi Insights
+1 206-823-3177
press@nimdzi.com
The 2022 Nimdzi 100 Language Services Market Analysis
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