RWS Holdings plc (AIM: RWS), the UK-listed AI content localization company, has agreed to acquire Acogroup, the parent company of Acolad, in a binding deal worth GBP 22.4m (EUR 26.0m) in enterprise value, RWS said in a regulatory announcement.
The Paris-area language services group brings 1,200 employees across 22 countries in Europe and North America, relationships with approximately half of the CAC 40 companies, and complementary strength in regulated industries, the public sector and interpreting.
The acquisition is expected to complete by March 31, 2027, subject to the applicable French information and consultation process and regulatory clearances.
A material expansion of RWS’s enterprise European footprint
RWS described the deal as a “material value creation opportunity” to bring its AI platforms to Acolad’s broader European client base, with Acolad’s clients set to gain access to the Cultural Intelligence Layer, Language Weaver Pro and the next-generation platforms RWS is developing in its Transform segment.
Approximately 75% of Acolad’s revenues are derived from localization and related services, with interpreting, transcription and other services accounting for the remaining 25%, RWS said. Acolad’s medical devices business complements RWS’s pharmaceutical work in life sciences, and the deal extends RWS into interpreting, an area RWS has historically not served at scale. Acolad’s clients will also gain access to RWS’s Generate and Protect solutions following completion, the announcement said.
Following completion, Acolad will become part of RWS’s Transform segment, with its clients and interpreting platform set to benefit from the Group’s language technology roadmap.
“This is a compelling acquisition that enhances our growth strategy as we deploy our AI content solutions. It significantly expands our enterprise client base, especially in Europe, to which we can bring RWS’s current and next-generation language technology platforms,” said Benjamin Faes, Chief Executive Officer of RWS Holdings plc.
“Its established presence and reputation in regulated markets, including medical devices, complements our life sciences franchise a nd broadens our exposure to attractive, resilient sectors. The Transaction also brings interpreting capability,” Faes added.
Acolad’s regulated-industries base and a decade of build-out
Founded in 1995 and headquartered in the Paris area, Acolad operates across 22 countries in Europe and North America with approximately 1,200 employees. Approximately half of Acolad’s revenues come from regulated industries, and the group works with approximately half of the CAC 40 companies, RWS said.
Acolad generated revenues of GBP 182m (EUR 211m) and adjusted EBITDA of GBP 13m (EUR 15m) in the year to December 31, 2025, with gross assets of GBP 404m (EUR 469m). On an annualised basis in RWS’s financial year ending September 30, 2027, Acolad is expected to contribute revenue of approximately GBP 155m (EUR 180m) and adjusted EBITDA of approximately GBP 11m (EUR 13m).
“I am delighted that Acolad and RWS are joining forces. Over the past decade we have built a European leader in content and language solutions with a simple ambition: to help the world’s most demanding organisations grow across markets by combining cutting-edge technology with deep human expertise,” said Bertrand Gstalder, Chief Executive Officer of Acolad.
“RWS is leading the way in the industry with their Cultural Intelligence Layer and technology portfolio and combining this with Acolad’s people, platforms and expertise will enable us to serve clients with greater ambition than ever before,” added Gstalder
Deal terms, structure, and market reaction
The acquisition values Acogroup at an enterprise value of GBP 22.4m (EUR 26.0m) against total consideration of GBP 40.2m (EUR 46.6m), the difference attributable to approximately GBP 17.8m (EUR 20.6m) of cash on Acolad’s balance sheet that will pass to RWS at completion. The enterprise value represents 2x Acolad’s adjusted EBITDA to September 30, 2027, with no third-party debt being acquired.
The transaction is structured through a bond purchase: RWS’s wholly owned subsidiary RWS Global Holdings Limited is acquiring all outstanding bonds issued by V.O. Paris, a subsidiary of Acogroup, and held by funds and accounts managed or advised by Barings. Those bonds will become an intra-group obligation within the RWS group after completion until unwound. The deal constitutes a “substantial transaction” for RWS under AIM Rule 12 and will be funded through existing facilities, after RWS refinanced its revolving credit facility in October 2025.
Completion is conditional on regulatory clearances from the French Ministry for the Economy, Finance and Industrial and Digital Sovereignty, and any other authority in charge of foreign investment control whose authorisation may be required, RWS said. Until completion, Acolad and RWS will continue to operate as separate businesses.
RWS shares closed approximately 15% higher on the day of the announcement, with the AIM-listed group closing near 111p. The RWS analyst consensus published on the company’s investor relations page prior to the deal points to a 164p target led by James Beard at Deutsche Numis Research, with Berenberg the joint broker.
