Lectra aims to boost Industry 4.0 offering with Gerber acquisition
Cutting technology provider Lectra has announced its intention to acquire US-based rival Gerber Technology.
It said that if it completes the acquisition, it would be able to enhance its offering of “Industry 4.0 technology that will help customers to boost the productivity and profitability of their operations”.
Combining the businesses would occur “at an opportune time” for both companies and for their customers, Lectra said. Together, the two companies would have a large installed base of product development software and automated cutting solutions, with a worldwide presence and “a long list of prestigious customers”.
At the same time, consolidating the two companies’ research and development capabilities would enable the combined entity to accelerate development of Industry 4.0 technologies and help customers seize the full potential of these innovations.
Lectra argued that the uncertain economic climate and “unprecedented challenges” that users of its technology, in industries including denim and fashion, face owing to the covid-19 pandemic made it “more important than ever for them to transform, digitalise and optimise their operations”.
Details of the planned acquisition are that, through cash, debt-clearance and new shares in its own business, Lectra will invest a total of €300 million in the deal. Gerber Technology’s revenues in 2020 were €165 million. The most recent figure for Lectra is from 2019, when it achieved revenues of €280 million. It will invite its shareholders to agree to its plan for the acquisition in a vote on April 30.
Daniel Harari will continue as chief executive of the combined company. His counterpart at Gerber, Mohit Uberoi, will act as a special advisor to Mr Harari until the end of 2021. On making the announcement, Mr Harari said: “Today is a historic day for our companies that will bring tremendous opportunities for future growth.”
Image shows denim from 7 For All Mankind, which has worked with Lectra in the past.
