HCL Tech to buy Geometric’s business

The Dollar Business Bureau

HCL Technologies is all set to acquire the businesses of Geometric Ltd., a Mumbai-based engineering and technology major, except the 58% stake Geometric holds with 3DPLM Software Solutions Ltd., a joint-venture of Dassault Systems, HCL said in an announcement.

“In consideration of this acquisition, HCL will issue 10 equity shares of Rs.2 each to Geometric shareholders for every 43 equity shares of Geometric of Rs.2 each held by them. In total, HCL will issue 15,640,546 equity shares of Rs.2 each,” HCL said in a press release on Friday.

With its acquisition of Geometric, one of India’s renowned PLM consulting, manufacturing engineering and mechanical engineering service providers, HCL will expand its presence in PLM consulting and mechanical and manufacturing space, besides giving a thrust to its existing automotive and industrial practices.

This transaction, therefore, gives HCL a strategic portfolio of R&D capabilities and end-to-end engineering across its full product cycle – ranging from its core business, hardware and software to mechanical and manufacturing engineering and PLM consulting.

“With broad end-to-end capabilities and rich experience Geometric brings in, the synergies allow us to take advantage of the rapidly growing manufacturing engineering and PLM service market. It also provides several cross-sell and up-sell opportunities as the customers will benefit from a unique service portfolio and end-to-end engineering, R&D, digital technologies and internet of things capabilities,” said G H Rao, President, Engineering and R&D Services, HCL Technologies.

“I welcome this as a truly synergies transaction, as both our employees and customers will benefit. Our customers will have access to a wide range of engineering services which complement Geometric’s offerings,” said Manu Parpia, CEO & MD, Geometric Ltd.