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Lectra to Acquire Gerber Technology to Strengthen 4.0 Technology
Tuesday 09 February 2021

France-based professional services and consulting firm Lectra has entered into a memorandum of understanding (MOU) to acquire the entire capital and voting rights of US-based integrated software and automated hardware solutions provider Gerber Technology to strengthen 4.0 technology, the company said.

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 EUR 175m (USD 212m) through a combination of cash and debt plus 5m newly issued Lectra shares to AIPCF VI LG Funding, LP, an affiliate of American Industrial Partners that is Gerber Technology's sole shareholder.

This would represent a total amount of about EUR 300m (USD 363m) based on Lectra's closing share price on February 5, 2021. No contingent consideration is contemplated.

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.

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.

The combined company's broader global reach will allow it to boost service capabilities to customers with the resources to anticipate and address changing market conditions.

Lazard is acting as exclusive financial advisor to Lectra, and Latham and Watkins as legal counsel to Lectra.

Goldman Sachs is acting as exclusive financial advisor to AIPCF VI LG, and Ropes and Gray LLP, Baker Botts LLP and Gide Loyrette Nouel A.A.R.P.I. as legal counsel to AIPCF VI LG.

Lectra offers technologies that facilitate the digital transformation of their industry. Lectra's offer empowers brands, manufacturers and retailers from design to production.
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Date Published: 09/02/2021

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