Godrej & Boyce investee company Geometric, provider of engineering services and product development, today announced the acquisition of 3Cap Technologies GmbH for Euro 11 million (around Rs 79 crore).
Geometric's German subsidiary, Geometric Europe GmbH has acquired 100 per cent stake in 3Cap Technologies, a specialist in electronics engineering, primarily for the automotive industry, based in Oberschleißheim near Munich, Germany. Geometric will pay Euros 7.5 million up front. It is funding the acquisition out of accrued cash.
The balance payments will be subject to earn-out under mutually agreed terms and conditions over a maximum period of three years. In the calendar year 2012, 3Cap had revenues close to Euros 11 million. The acquisition is effective January 1, 2013.
3Cap employs over 110 people, all of whom work out of Germany. It has seven customers, which are mostly tier 1 automotive suppliers. 3Cap offers a multitude of services to its customers ranging from Embedded Systems Development Verification and Validation, and Calibration in the areas of powertrain and chassis.
“This acquisition represents an important step in our strategy to provide greater capability and more comprehensive solutions in the digital product realisation space to our customers," said Manu Parpia, MD & CEO, Geometric.
Geometric has presence in engineering software and mechanical engineering services, with almost 70 per cent of its revenues coming from the US market. “The use of embedded systems is increasing in all our customer products. This acquisition fills a major gap in the solutions we offer to our customers, while at the same time strengthening our presence in Europe. Thus, in taking this action, we address two main needs of our customers - the ability to deliver embedded systems based solutions and a stronger presence in Europe,” he added.
3Cap's founder Henri Sadoune, who is a French national based out of Munich, Germany has entered into a long term agreement with Geometric and will take responsibility for all embedded systems activities, including Geometric’s existing embedded systems projects.
Henri Sadoune, MD, 3Cap Technologies added, “We are very happy to provide our customers the global reach and end-to-end capabilities that this association with Geometric gives us. Moreover, the underlying ethos of both companies to ‘partner’ with customers will further cement this merger and strengthen our common business development”.
The company's, which also has Rakesh Jhunjhunwala as one of the largest shareholder, stock price closed at Rs 100.85 per share up marginally from the previous close.
