Czech Republic-based translation management system (TMS) Memsource has acquired Phrase, a competing TMS headquartered in Hamburg, Germany. Memsource chief executive officer (CEO) David Čaněk would not disclose the value of the deal, but did indicate it was a predominately stock transaction: “The three founders of Phrase will become shareholders of the Memsource group.”

Phrase — formerly known as PhraseApp — will continue to operate its technology independently of Memsource with Čaněk serving as both business units’ CEO. Čaněk would not disclose Phrase’s annual revenue, but a Memsource news release references Lufthansa Systems and Pizza Hut Digital Ventures as two key Phrase clients. The acquisition was funded by The Carlyle Group — an American private equity corporation that became Memsource’s majority shareholder last July.

In a space that has recently become crowded with multiple small to medium size TMS, MultiLingual asked Čaněk why buy Phrase. “A few reasons,” he emailed, explaining Phrase was “a bootstrapped business — just like Memsource — with a similar culture and a very successful high-growth business complementary to Memsource in many ways,” both in terms of product and European regional focus.