ASX Tech Stocks: Straker hits Europe with Belgian buy and Shekel Brainweigh: cool name, record numbers

Translation platform Straker expands European presence
Shekel Brainweigh reports record FY21 revenue of US$22.6m

Straker Translations (ASX:STG)

The AI translation platform has jumped 8.7% today, (1300 AEDT) on plans to acquire Belgium-based IDEST Communication SA – a company serving clients like the United Nations and European Commission for more than two decades.

The Belgians are in for an upfront payment on completion of EUR€1.75 million (NZ$2.9 million), comprising EUR €1.5 million in cash and EUR €250,000 in shares – on completion – in Straker ordinary shares at an issue price of AU$1.48per share.

Straker has also agreed to pay additional consideration to IDEST’s vendors of up to an additional EUR€2.5m in cash over two years, the majority of which is contingent on hitting those revenue growth targets.

Coming for the UN, staying for the acquisition synergies

Straker says the acquisition will consolidate and extend its presence in the multi-billion-dollar European translation market, establishing new relationships with leading global institutions, including the European Commission, European Parliament, UNESCO, and the United Nations.

It also offers Straker acquisition synergies, including the gains that will come from the integration of the RAY Ai-powered translation platform into IDEST.

Shekel Brainweigh (ASX:SBW)

The weighing technology player was up 2.38% today, (1300 Sydney) on record unaudited FY21 revenue of US$22.6 million – up 23% on FY20.

SBW’s scales division reported record unaudited revenue of about US$ 21.7 million (an increase of about 20% on FY20) across all business areas – export retail sales (up 32%), domestic sales (in Israel, up 30%), export medical sales (up 12%) and service fees (up 12%).

Weighty numbers

The company’s retail innovation division recorded revenue of US $930,000 , a 247% increase on US$268,000 in FY20.

SBW says this exponential growth was driven by sales of its autonomous vending solutions, as well as new autonomous stores opened in France, Israel, US and Germany.

CEO Arik Schor expects the trend to continue in the year ahead.

“Shekel scales legacy business is growing while improving profitability, while Shekel’s retail innovation business is demonstrating exponential growth and strong market demand,” he said.

“The results give us confidence in our ability to further grow the business activities in our focus market segments. We are excited about the prospects ahead of us in 2022.”