#55 Memsource CEO on Buying Phrase, Straker’s Lingotek Deal, TransPerfect FY 2020

In SlatorPod #55, aka “TMS week,” Memsource Founder and CEO David Canek joins us to talk about the acquisition of localization SaaS provider Phrase, announced just this week. David walks us through his company’s milestones, from Memsource’s launch in 2010 as a cloud-based TMS and their very first paying customer in 2012, to growing as a bootstrapped company until July 2020, when investment firm giant Carlyle took a majority stake in the company.

He shares insights into the acquisition of Germany-based Phrase, discusses why their developer-targeted product is complementary to Memsource’s offering, and outlines the direction of the company

First up, Esther and Florian unpack the week’s language industry news, which was dominated by translation management acquisitions, as DACH-based Across sold to financial investor Volaris Group and New Zealand-based language service provider (LSP) Straker bought Lingotek, a US-based TMS provider.

The two talk about TransPerfect’s 2020 financial results, as the LSP gorilla grew 11.5% over the year, adding revenues of USD 88m to its topline through a mix of acquisitive and organic growth. 

CEO Phil Shawe told Slator TransPerfect won’t be following in Lionbridge’s footsteps in selling off their data-for-AI division (“or any other any other division for that matter.”) Florian and Esther discuss the reasons why TransPerfect and Lionbridge are part of a growing number of LSPs operating in the data-for-AI services niche, and why LSPs are structurally geared up to succeed in the fast-growing space.