Straker shares surge 93% on selection by IBM for global translation services

With the major expansion of their cloud computing capabilities, tech conglomerate IBM has selected Straker Translations (ASX: STG) to provide adaptive translation services across several IBM technology platforms.

The partnership expands on an existing one between the two companies where Straker had previously translated Spanish for IBM, but will now apply the artificial intelligence-powered tech across 55 languages with French, Chinese, Portuguese and Japanese among the more popular ones. 

“We are thrilled to have secured this strategic agreement with IBM, and further build our existing relationship with a world leader in data management, software, artificial intelligence and cognitive computing,” said Straker CEO and Co-Founder, Grant Straker. 

“Our industry, like almost every other, is being fundamentally changed by the accelerating use of AI across all facets of localisation.” 

“The agreement requires extensive integration with IBM and the opportunity to build a deep partnership with the world’s leading AI company is hugely exciting. We expect it will open up new opportunities for us to partner on innovation within our industry”.

The material impact of the partnership is yet to be determined with uptake of Straker’s translation services within the IBM platforms to be the driving force of potential revenue, however, the Company anticipates increasing its headcount by 30% to support the increase of scope within the partnership. 

Based in New Zealand, Straker Translations combines artificial intelligence, machine learning and crowd-sourced freelancers to deliver end-to-end translation services. 

The emergence of working-from-home brought upon by COVID-19 has seen an increase in demand for translation services as evidenced by Straker’s sales up 29% to NZD $7.5 million for the quarter ending 30 September 2020. 

STG shares have responded exceptionally well following news of the new IBM partnership, reaching an intraday high of $1.75, a 93% increase from their previous $0.905 close.