May 24, 2022

Lectra proposes to buy Gerber Technology for € 300m

Supplier of software, hardware, data and services for the fashion, automotive and furniture sector, the French Lectra wants to buy its American competitor Gerber Technology for € 300 million. The acquisition is subject to the approval of the regulatory authorities and that of Lectra’s shareholders.

Founded in 1973 and based in Paris, Lectra develops integrated technological solutions – software, equipment, data and services – for working with textiles and leather in the fashion, automotive and furniture sectors. Its automatic cloud-based placement software, Flex Offer, for example, makes it possible to accurately calculate the quantity of fabric needed to avoid any shortage or excess of stock, from procurement to production. The French company has just signed a memorandum of understanding to buy the American Gerber Technology, which has been working in the same field for 50 years with CAD, PLM and collaborative management solutions on production schedules. In the uncertain economic context set up by the Covid-19 crisis, which particularly affects fashion and the automotive industry, this merger would allow the two companies to extend their offers in the field of Industry 4.0 and to cope with changes market, Lectra says.

The French supplier, led by Daniel Harari, proposes to acquire all of the outstanding shares of Gerber Technology for € 175m (out of cash and with the aid of a loan) and to issue 5 million Lectra shares at benefit of the sole shareholder of Gerber Technology, AIPCF VI LG. The total of the operation would thus amount to approximately 300 million euros. Gerber Technology achieved sales of € 165 million in 2020. This acquisition remains subject to the approval of regulatory and competition authorities, as well as the approval of Lectra shareholders. The French company will present its financial results for its fiscal year in the middle of the week. Over the first 9 months of the year, it achieved a turnover of 170.6 M €, down 16% and a net profit of 11 M € (-48%). Its net cash amounted to € 117.9 million. (update of 02/10/2021) Over the whole of 2020, turnover stood at € 236.2 million (- 14%), net income at 17.6 million € (- 40%) and net cash at € 134.6 million.

Lectra strengthens its collaboration with Microsoft

A few days ago, Lectra also announced the strengthening of its partnership with Microsoft, which began in 2015 with the choice of the Azure cloud to host some of its offers, in particular Kubix Link, its collaborative PIM platform (information management on products), PLM (product lifecycle management) and DAM (digital asset management). The latter helps brands and store chains connect all stakeholders, from the search for ideas to physical and digital points of sale, to improve the omnichannel experience of consumers. Lectra and Microsoft are now planning a common approach for their customers in the clothing market, in France and Italy, then more widely internationally.

For brands, Kubix Link brings together all the information on the products. (Credit: Lectra)