Geometric acquires services division of Modern Engineering in US

Mumbai: Geometric Software Solutions Company Ltd will acquire the globa1 engineering services division of Detroit-based Modern Engineering for about $32 million, under an agreement signed by the two companies. The merger would form a global engineering solutions provider with an expansive services portfolio, Geometric informed the BSE.

Geometric said the transaction would be funded partly by private placement of about $10 million of shares and the rest through borrowings and internal accruals. The deal value includes about $7 million in working capital loan, Geometric said in the statement.

"The merger of Modern Engineering's engineering division and Geometric represents a significant step in the realisation of the true potential of global engineering", Ravi Gopinath, MD and CEO, Geometric Software, said in the statement.

"Modern's track record in engineering and manufacturing solutions coupled with Geometric's presence in the development of cutting edge collaborative PLM solutions will offer our customers an unbeatable advantage in globalising their engineering processes . We are excited to be the one of the few companies offering the global manufacturing sector this significant value proposition," he added.

Geometric said the acquisition would help it tap market opportunities and generate significant growth in revenue and earnings. Modern's engineering services division had an annual revenue of about $40 million, it said.