RWS agrees potential £40m acquisition of Obviously Group

(Sharecast News) - RWS Holdings said on Tuesday that it had reached an agreement in principle to acquire Obviously Group, a UK-based AI-enabled intellectual property and brand protection platform, in a deal that could be worth up to �40m.

The AIM-traded AI solutions company said the parties were in advanced and exclusive talks to finalise legally binding transaction documents, having agreed in principle on all substantive terms.

It cautioned that there could be no certainty a transaction would ultimately be agreed.

RWS said the acquisition, if completed, would position the group as a provider of an end-to-end brand lifecycle technology solution, spanning creation, localisation and protection.

The company said it would strengthen its value proposition as a unified 'Global Brand Guardianship' platform for large enterprise clients.

Obviously, launched in 2024 and based in London, provides an integrated platform that enables enterprise clients to manage, protect and enforce intellectual property and brand integrity.

It employs about 30 people, half of whom are engineers and developers.

The platform covers IP portfolio management, including case and workflow management and integrated patent and trademark renewals; AI-enabled brand protection, including identifying threats such as counterfeits and copycats; and IP intelligence, which uses commercial and sales data to link enforcement activity to real-world commercial impact.

RWS said Obviously had started to disrupt the IP management and protection market and had displaced existing solutions for multiple enterprises.

It said its customer base included media and entertainment, technology, financial, pharmaceutical and sports companies.

For the year ended 28 February, Obviously generated revenue of about �2.5m and a loss of about �1.5m.

If acquired, it would become part of RWS's Protect segment and continue to be managed by current chief executive Lewis Whiting.

RWS said the deal would expand its total addressable market by about �2bn through entry into trademark and brand protection solutions, while also strengthening its Protect division's ability to capture a larger share of its existing market.

The group said it planned to use Obviously's technology to offer patents, trademarks and brand services through a single AI-enabled platform.

It said the proposed acquisition would comprise initial cash consideration of �16.5m on a cash-free, debt-free basis and subject to customary adjustments.

Further earn-out consideration of up to �23.5m would be payable depending on stretching EBITDA-related performance hurdles for the financial years ending 30 September 2027, 2028 and 2029, subject to the total consideration cap of �40m.

Chief executive Benjamin Faes said the acquisition would be "a significant step forward" in accelerating RWS's growth and its shift towards being a technology-first business.

"Obviously's innovative integrated platform, which safeguards brands through IP and brand management, protection and enforcement intelligence, will be a strong fit with both our existing patent-focused IP business and our localisation capabilities," he said.

Faes said bringing Obviously into the group would allow RWS to offer an integrated global brand guardianship solution to existing clients and position it for potential clients across its existing and expanded addressable market.

Whiting said the proposed transaction would mark "an important milestone" in Obviously's development.

"Our platform will fast-track RWS's journey in the IP digital marketplace and bring exposure to a complementary market - brand protection," he said.

"I look forward to the opportunity to bring our AI-driven platforms and expertise in relation to legal brand guardianship to RWS's extensive customer base in the Protect and Transform segments."

At 1133 BST, shares in RWS Holdings were up 5.12% at 96.98p.

Reporting by Josh White for Sharecast.com.

See latest RNS on Investegate