New Delhi: IT services provider HCL Technologies announced its deal to acquire Geometric, a PLM consulting, mechanical engineering and manufacturing engineering services provider in India, for nearly $200 million.
The deal will not include Geometric’s 58 percent stake in DPLM Software Solutions, its joint venture with Dassault Systemes.
Geometric, headquartered in Mumbai, clocked revenues of INR 8,139.3 million in fiscal March 2015. The revenues were INR 6,735 million were for the nine–month period ended Dec 31, 2015.
HCL Technologies will issue 10 equity shares of Rs 2 each to Geometric shareholders for every 43 equity shares of Geometric of Rs 2 each held by them. In total, HCL will issue 15,640,546 equity shares of Rs 2 each.
The all-share transaction will be valued at over Rs 1,200 crore based on current stock prices of HCL.
Considering the HCL Technologies share price closed at over Rs 820 on Indian bourses on Friday, the deal is valued at Rs 1,280 crore (nearly $200 million). The shares of HCL had closed at Rs 820.70, up Rs 6.55 or 0.80 percent on Friday.
HCL’s engineering services business clocked revenues of around $1.2 billion in 2015.
The acquisition of Geometric strengthens HCL Technologies’ presence in PLM consulting as well as mechanical and manufacturing engineering space. It also significantly strengthens HCL’s automotive and industrial practices.
Geometric has more than 60 clients in USA and Europe, majorly in automotive and industrial engineering segments. It employs 2,606 people across 13 delivery locations in the US, France, Germany, Romania, India and China.
HCL Technologies will inherit several unique Geometric processes, methodologies and intellectual properties in PLM and digital manufacturing, along with specialized professionals in the PLM consulting as well as mechanical and manufacturing engineering space.
GH Rao, president, Engineering and R&D Services, HCL Technologies said that the acquisition of Geometric provides several cross–sell and up–sell opportunities as the customers will benefit from a unique services portfolio of end–to–end engineering, R&D, digital technologies and internet of things capabilities.
HCL Tech buys Geometric for Rs. 1,283 Cr
