Lectra, which mainly develops enterprise level management software, is planning to buy Gerber Technology in a deal worth up to €300 million.
Gerber has a broad range of interests ranging from display graphics and packaging to fashion, furniture and aerospace. It has developed the YuniquePLM product lifecycle management software as well as several cutting plotters and routers plus a highly popular thermal transfer printer, the Gerber Edge.
Lectra operates across the fashion, automotive and furniture industries and has developed a range of software such as Lectra product lifecycle management. Lectra already has a solid role in developing Industry 4.0 management software and adding Gerber’s R&D capabilities will add to that and expand its customer base.
Lectra has signed a memorandum of understanding in which it proposes to acquire all of the outstanding shares of Gerber Technology for an upfront payment of €175 million – financed through a combination of cash and debt. In addition, Lectra will issue 5 million new shares to AIPCF VI LG Funding, an affiliate of American Industrial Partners, which currently owns Gerber. The new share issue is subject to a vote at a dedicated Extraordinary Shareholders’ Meeting which is currently expected to be held on April 30, 2021.
In total, this values the proposal at around €300 million based on Lectra’s closing share price on February 5, 2021. It’s worth noting tht Gerber Technology’s revenue for 2020 was €165 million.
Once the deal closes, Daniel Harari, Chairman and Chief Executive Officer of Lectra, would own around 14.6% of the Lectra shares while AIPCF VI LG would own around 13.3% and would also gain a seat on Lectra’s Board of Directors. Harari would continue in his role and Mohit Uberoi, currently Gerber’s CEO, would commit to a role as a special advisor to Harari until the end of 2021.
Harari said the deal would “bring tremendous opportunities for future growth” adding: “We’re delighted to welcome Gerber Technology’s group of talented professionals to the Lectra team. Unifying the two teams will showcase the strength of our fantastic employees. Together, we will be able to grow and expand the services we provide to our customers and help them accelerate their digital transformation.”
You can find more details from lectra.com and gerbertechnology.com.
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