Lectra Acquires Investronica in $65m Deal
Paris-based technology provider Lectra has acquired the number-three player in the CAD/CAM market, Investronica Sistemas, for $65.4 million (51.5 million euros) in cash, stock and debt. The deal is expected to strengthen Lectra’s global position as a technology provider as well as bolster its position in the fashion market.
Investronica, based in Madrid, Spain, has held a strong position with fashion houses such as Dolce & Gabbana, Dior, Gucci, Zegna, Benetton and Canali. In the United States, Investronica maintains a presence with accounts including Ralph Lauren and Levi Strauss & Co. The company has offices in Atlanta and in the California Market Center in Los Angeles. Lectra’s North American headquarters are in the Atlanta area. Lectra has not indicated whether it will consolidate the operations of the two companies.
Both companies provide cutting-room equipment and CAD software used for the design of garments and industrial fabrics. Investronica also markets computer integrated manufacturing (CIM) equipment, while Lectra has additional software products relating to product development.
The combined assets will give Lectra 1,500 employees and 16,000 customers worldwide.
Investronica posted $74 million (58 million euros) in sales and $893,000 (700,000 euros) in net income in 2002. Lectra logged $170 million (134 million euros) in sales through the first nine months of its fiscal year.
“The acquisition of Investronica Sistemas comes at the right moment in time to embark on a new strategy of conquest,” said Daniel Harari, Lectra’s chief executive officer, in a statement. “Our customers’ technology needs in all our market sectors are greater now than ever before if they are to tackle the major challenges now facing them. The combined companies will bring them the guarantee of the most extensive, powerful, state-of-the-art technologies and unrivaled service.”
Under the terms of the deal, Lectra will acquire all Investronica’s shares for $7.6 million (6 million euros) and 1 million shares of Lectra stock, along with assumed debt valued at $49.6 million (39.2 million euros). The debt includes loans extended to Investronica by parent company and Spanish apparel manufacturer Induyco. Payments will take place over four installments through 2006.
Harari said he expects Lectra to make further acquisitions as the company’s financial position strengthens and the market continues to move toward consolidation and reorganization. —Robert McAllister
