French fashion-tech company Lectra has recently acquired a majority stake in Launchmetrics, an American firm specialising in cloud-based SaaS marketing solutions. This strategic move allows Lectra, known for its CAD software and CAM cutting-room systems for textiles, to expand into the marketing domain within the fashion industry.
By integrating Launchmetrics’ expertise, which revolves around brand performance analytics utilising artificial intelligence and cloud computing for fashion, lifestyle, and beauty sectors, Lectra aims to fortify its standing as a key player in Industry 4.0. Launchmetrics, established in 2015, anticipates revenues of approximately US $ 45 million in 2023-24, with more than US $ 40 million coming from recurring sources. Their adjusted EBITDA is projected to reach US $ 5 million, serving nearly 1,700 clients across 20 countries, including esteemed fashion brands.
Lectra secured a 50.3 per cent share of Launchmetrics for around US $ 85 million, contingent on the latter’s 2023 recurring revenues and EBITDA. The acquisition process will continue in stages until 2030, with Lectra intending to obtain the remaining capital and voting rights. The total acquisition cost is estimated to range between US $ 200 and US $ 240 million, factoring in expected double-digit growth in recurring revenues and EBITDA from 2024 to 2029.
Daniel Harari, Lectra’s chairman and CEO, highlighted how this acquisition aligns with their strategy to broaden their footprint in the fashion market. By integrating Launchmetrics’ solutions, Lectra aims to become the sole technological partner assisting clients from product development to production, and then throughout collection management, marketing, e-commerce, and traceability.
This acquisition marks Lectra’s latest strategic move following previous acquisitions like Netven (2021), Textile Genesis (2022), Gerber Technology (2021), and Gemini Cad (2021). This step signifies Lectra’s commitment in the fashion-technology sector, resonating with its strategic roadmap from 2023 to 2025 presented earlier in 2023.
