In a breakthrough development, France-based Lectra has announced to enter into an MoU to acquire US-based Gerber Technology.
The development is massive as both Lectra and Gerber Technology are considered two leading cutting solution providers in the world of fashion, textile, automatic and furniture industries and are the ones to lead Industry 4.0 integration in their respective offerings.
The acquisition, if and when consummated, would allow Lectra to complement its market position and continue to enhance its offerings based on Industry 4.0 technology that will enable its customers to boost the productivity and profitability of their operations.
The strategic combination of Gerber Technology and Lectra will create a premier advanced technology partner, able to quickly meet changing customer needs and deliver even more value through seamlessly integrated solutions.
Together, the two companies will have a large installed base of product development software and automated cutting solutions in operation, with a worldwide presence and a long list of prestigious customers.
“It’s historic moment for our companies that will bring tremendous opportunities for future growth. We will have investments in innovation and technological capabilities that will be highly beneficial to the industry. They will allow us to create long-term value for our customers and our shareholders,” states Daniel Harari, Chairman and Chief Executive Officer, Lectra, 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.”
Under the proposed acquisition, Lectra would acquire all outstanding shares of Gerber Technology on a cash-free debt-free basis for an upfront payment of Euro 175 million — through a combination of cash and debt — plus 5 million newly issued Lectra shares to AIPCF VI LG Funding, LP (“AIPCF VI LG”), an affiliate of American Industrial Partners that is Gerber Technology’s sole shareholder.
This would represent a total amount of about Euro 300 million. It’s worth noting here that Gerber Technology’s revenue was Euro 165 million in 2020.
“It has been an honour to lead the transformation of Gerber Technology and create an efficient, comprehensive platform that enables our customers’ digital transformation initiatives. Gerber Technology and Lectra share a long history of innovation and excellent customer service that, brought together, will create an even stronger company that provides best-in-class technology solutions and services to our customers globally,” said Mohit Uberoi, Chief Executive Officer, Gerber Technology who would assume a role of special advisor to Daniel Harari until 2021 end.