Paris – Textile solutions specialist Lectra has entered into a Memorandum of Understanding (MoU) to acquire rival firm Gerber Technology for a total of €300 million.
Gerber supplies a range of CAD and automation systems for production, planning, design, pattern development. costing, cutting, marking, fabric spreading and sewing processes in the knitting and wider industry. Lectra says that the move, if and when completed, will create a “premier advanced technology partner, able to quickly meet changing customer needs and deliver even more value through seamlessly integrated solutions”.
The Parisian firm’s CEO, Daniel Harari will maintain his position for the joint venture, it’s expected, whilst Gerber CEO Mohit Uberoi would assume special advisor to Harari until the end of the year.
The terms of the proposed acquisition would encompass an upfront payment of €175 million – through a combination of cash and debt – as well as five million newly issued Lectra shared to AIPCF VI LG Funding, which is the sole shareholder of Gerber.
Upon closing, this would see CEO Harari own 14.6 per cent of Lectra shares, whilst AIPCF would own 13.3 per cent.
The companies’ core competencies are in digital, IoT-connected design, cutting and apparel manufacturing technologies that work to streamline product development.
The pair have long since been rivals in the industry, but the acquisition would enable Lectra “to boost service capabilities to customers around the world thanks to greater resources and the joint force of Gerber Technology and Lectra’s sales and support teams”.
Harari commented: “Today is a historic day 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 our industry. They will allow us to create long-term value for our customers and our shareholders.”
Mohit Uberoi, of Gerber added: “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 to our customers globally.”