Phil Shawe, cofounder and billionaire CEO of TransPerfect, doesn’t approach mergers and acquisitions the way traditional private equity players do. In just the first eight months of 2025, his company completed nine acquisitions including Unbabel, Bear Down Studios, Technicolor Games, and Blu Digital Group and each one followed a disciplined, people-first investment approach. For Shawe, it's not just about the numbers. It's about strategic alignment, entrepreneurial spirit, and technology that fits within the company's broader mission. “We don’t even call our deals acquisitions,” he says. “We call everybody a merger partner.”
Unlike firms that acquire, strip down, and restructure for margin expansion, TransPerfect's M&A strategy centers on preserving talent and culture. Shawe emphasizes that they try to retain the vast majority of employees and repurpose them within the company. “What we’re really acquiring is the human talent and the innovation, not just a P&L,” he explains. The company's preference is for founder-led or entrepreneur-driven organizations, especially when leadership is eager to stay on after the deal. In fact, one of the biggest red flags in any transaction, he says, is when a founder or senior executive plans to exit immediately. TransPerfect wants partners, not sellers.
One major benefit Shawe offers to entrepreneurs is operational relief. “Our pitch to them is simple: You didn’t get into this business to manage payroll or back-office accounting,” he says. “Let us take care of that while you focus on customers, building great tech, and growing your vision.” This structure allows entrepreneurs to remain creative and customer-facing while benefiting from TransPerfect’s resources and global infrastructure.
Still, acquisitions have to make strategic sense. TransPerfect prefers companies that already use its core technologies or are at least open to adopting them post-deal. “If we acquire a company using a competitor’s software, we expect them to transition to our stack,” Shawe says. “It’s not about control it’s about aligning with the ecosystem we’ve already built.” That means centralizing accounting systems and language tech platforms. Even if day-to-day operations remain untouched, tech and data standardization are non-negotiable.
Shawe isn’t swayed by flashy revenue numbers or big-name clients alone. He’s skeptical of deals made just to show growth. “We’re a private company we don’t need to chase numbers to impress the market,” he explains. “Our focus is on building a great business that serves our customers, and that means making selective, strategic investments.”
A key filter in his acquisition model is product salability. If Shawe doesn’t believe TransPerfect’s existing salesforce can successfully sell the acquired product even with training or a niche rep he’s less likely to move forward. “Some people buy businesses for the logos or revenue. That’s never been our approach,” he says. “If we can’t sell it, we probably shouldn’t buy it.”
Diversification is another major factor. Rather than repeatedly acquiring similar language-focused firms, Shawe looks for businesses that expand TransPerfect’s capabilities across new sectors or regions. This explains the 2025 acquisition of Blu Digital, which offers cutting-edge film and streaming content distribution tech, and MPC, a renowned visual effects studio that worked on Dracula. Both extend TransPerfect’s media footprint into new verticals. Deals that add geographical coverage especially across different time zones are also appealing. “We love that we can run a 24/7 global operation,” Shawe says. “If a client needs something in a hurry, we can do it without burning out our U.S. staff.”
Ultimately, Shawe’s vision boils down to a simple formula: entrepreneurial leaders, sticky products, and technology that enhances the group’s ecosystem. As TransPerfect continues to scale, each deal is evaluated through this cultural and strategic lens. “The most important thing,” he says, “is that we bring on partners who are passionate about solving real problems ideally ones we aren’t solving yet.”
