2,790 crowdsourcing and crowdfunding sites
Massachusetts-based Lionbridge Technologies (Nasdaq: LIOX), which claims the mantle of world's largest enterprise crowdsourcing company, today announced a major acquisition that seems likely to broaden the firm's reach and capabilities in a big way.
Lionbridge says it has inked a deal to acquire privately-held Virtual Solutions, Inc. which provides a popular workforce solution called "vcapture," primarliy used by state and local governments for completing tasks from data entry and content creation at scale and in a secure environment.
Lionbridge was one of the original enterprise crowdsourcing companies, managing a virtual network of professionals in more than 100 countries for over a decade. Today, it currently works with more than 800 global brands by drawing on its over 100,000 professional cloud workers offering translation, online marketing, content management and application testing solutions. The company hopes the new acquisition will enable it to offer a more complete task management platform to a wider array of clients.
“Organizations across industries are increasingly turning to enterprise crowdsourcing as a proven business solution that offers significant cost advantages, greater flexibility and faster access to a larger pool of globally distributed qualified resources," said Rory Cowan, CEO of Lionbridge. "We will leverage Virtual Solutions’ unique skills in the area of government services and their highly secure task management platform to broaden our crowdsourcing capabilities into new markets and new applications as we accelerate our growth in 2013 and beyond."
The deal is further evidence of the growth trend in enterprise crowdsourcing that's been documented in analysis done by our own research arm, massolution.
“With increased proliferation of highly scalable cloud-based technologies, we are observing the increasing democratization of labor into the cloud” said Carl Esposti, CEO of Massolution and founder of Crowdsourcing.org. “Leading enterprise crowdsourcing providers such as Lionbridge are driving this transformation, disrupting traditional captive labor-based models via specialized platforms that provide on-demand access to cloud-based labor and expertise.”
Lionbridge disclosed that it 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.
You can watch a video from the company about the acquisition below: