In the revised version we update figures for many companies with more accurate and more recent numbers. We have also split the reports into three sections:
Out of the companies for which we have reliable data for the last 3 years, 80 percent grew in revenue, while only 20 percent stayed the same or shrank. Nimdzi estimates the market as a whole will grow at 7.4 percent CAGR for the next 5 years.
In comparison to the average market growth rate, leading companies are growing at a rate of 12 percent. In many individual cases, this faster growth is driven by acquisitions, which greatly influenced the market in 2017, as can be seen in the table below.
Acquisitions made by RWS Group and Keywords Studios propelled them to the Nimdzi Global Top 10, also increasing their capitalization to previously unseen values. While RWS paid more than twice the turnover for Moravia, its stock price now put the company’s capitalization at 4.5x the combined turnover. Same with Keywords – they are valued at 5x their revenue at the time of this report. The effort invested into acquisitions and funding pays well. In other words, for every dollar invested in acquisitions, companies tend to see an immediate two-dollar return in their market capitalization. Like magic!
In France, the leading LSPs have been completely transformed by acquisitions in 2016-2017. Both Datawords and Technicis, the 2nd and the 3rd players in the market practically doubled revenue over two years. Datawords acquired a digital agency Vanksen, and Technicis has snapped up Arancho Doc in Italy and Translation Probst in Switzerland. HL Trad, another company in France’s Top 10, has also increased revenue significantly with acquisitions.
This data is not intended to imply that these companies are growing exclusively through acquisition. Organic growth also plays a role.
Companies with organic growth each have an individual unique driver. We can make few generalizations in the current report.
Stay up to date when the latest research is published by signing up for our notifications directly to your inbox.
If you are interested in discussing any of the information in this report with the Nimdzi team, we are eager to talk to you. If you have any questions, please reach out.
With the ever-increasing pressure of an impending product launch date, it is quite frequent for clients and language partners to get caught up in day-to-day activities. The focus is on the deliverables, naturally. The important factors that help make a healthy client-vendor partnership get less attention.
Continuous growth and fragmentation have been the key characteristics of the language services market. Let's see what the data says.
Judging by the conversations Nimdzi has been having with users of translation business management systems (BMS), the time for a change is now.
The Nimdzi 100 is one of our flagship publications. It includes a ranking of the top 100 LSPs by revenue, a watchlist of large players that don’t disclose their revenues, and a detailed overview of the size and state of the language services industry. The Nimdzi 100 is widely considered an industry standard and is read by tens of thousands of people in the translation and localization space and beyond. LSPs, localization buyers, investors, savvy job seekers, and analysts will benefit from this free resource.