Lionbridge Signs Deal to Buy Virtual Solutions

Lionbridge Technologies, Inc. LIOX today announced that it has signed a definitive agreement to acquire Virtual Solutions, Inc., a privately-held provider of crowdsourcing solutions to state and local governments.  The addition of Virtual Solutions enables Lionbridge to address growing demand for secure, technology-enabled enterprise crowdsourcing solutions that leverage a pre-qualified global talent pool or "private crowd" and a highly-secure technology platform to manage and complete business projects. As one of the original enterprise crowdsourcing companies, Lionbridge has more than a decade of expertise in managing a virtual network of professionals across more than 100 countries, from globally broad communities to geographically narrow teams.  By adding Virtual Solutions' proven platform for task management, Lionbridge will provide clients with a complete, technology-enabled enterprise crowdsourcing solution that assembles the right combination of cost, capability and skill for any project, from simple data entry to complex data processing.  Lionbridge expects to acquire Virtual Solutions, Inc. for a total estimated purchase consideration consisting of $3.6 million to be paid upon closing using Lionbridge's existing cash resources, $1.0 million of deferred cash consideration, and a $3.0 million earn-out potential payable in cash over the course of three years, subject to the attainment of certain annual revenue metrics. The Company expects the acquisition to contribute modestly to earnings in 2013 including minimal acquisition and integration costs.