Geometric Software Solutions has made further disclosures on its acquistion of TekSoft and Cimtronics for a total cash consideration of $1.75 million. With reference to letter dated January 04, 2005, the company informs that it has acquired 7583 shares of TekSoft and 500 shares of Cimtronics constituting 100% of the common Stock of each of them respectively from OnCourse, a company based at Wisconsin, USA (hereby called as "TekSoft Shares" and "Cimtronics Shares", respectively).According to a release issued to the BSE, the company has surrendered to OnCourse, 269 shares in the preferred stock of OnCourse, for their cancellation as non-cash consideration for acquiring TekSoft Shares. These shares were acquired by the company for a total consideration of $269,000.Subsequent to the acquisition, the company has sold the Cimtronics shares to Mr. Gary Fulton, the core management of Cimtronics in pursuance of one of the preconditions. These shares were sold for $100,000 i.e. the same price as paid by the company to OnCourse for acquisition plus proportionate share of direct expenses. Cimtronics is a re-seller of various CAM softwares including those owned by TekSoft.The company has also sold 1510 (19.9% approx.) shares in the common stock of TekSoft ("Management Shares") to four individuals who are a part of core management of TekSoft's for the same price per share as paid by the company (inclusive of the non cash consideration) to acquire TekSoft Shares plus a proportionate share of direct expenses, the release said. Further, during the financial years ending as on March 31, 2008, March 31, 2009 and March 31, 2010 respectively, the Company is committed to buy-back the management shares from such individuals at a consideration that is based on the performance of TekSoft. The net investment of the company for acquisition of TekSoft shares has been $1.66 million equivalent to Rs 7.27 crore, the release added.
