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VDR glossary · Features

What is machine translation in a data room?

Definition

Machine translation: Automatic translation of documents or passages inside the data room, letting reviewers read material in a language they do not speak without sending files to an outside translation service.

How it works in a data room

A reviewer opens a document and chooses a target language, or requests translation for a whole folder. The system translates the text with a neural model and shows it beside or instead of the original in the secure document viewer. Scanned files need OCR first. Translations are usually marked as machine output and stored separately from the original, which remains the authoritative version. Some rooms also translate Q&A messages and allow cross-language search.

Why it matters in a deal

Cross-border deals routinely involve contracts, permits and board minutes in several languages. Sending them to an outside service adds cost, delay and another party holding confidential data. In-room translation keeps documents under the room’s controls and lets reviewers triage quickly. For clauses that matter legally, a professional translation or local counsel review is still needed. Check where translation runs, as it may involve processing outside your chosen region.

Example

A Canadian buyer reviewing a target with operations in Quebec, Germany and Japan receives contracts in French, German and Japanese. Reviewers use in-room translation to identify the 60 contracts with change of control or exclusivity terms, then commission certified translations of those alone. The Canada guide covers local language requirements.

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