Geometric buys Modern Engg unit
Geometric Software Solutions Co Ltd has acquired the engineering services division of Detroit based Modern Engineering.
The deal is valued at about $32 million, including a working capital loan of about $7 million. The net equity value of $25 million is funded by Geometric’s contribution of $23.75 million representing 95 per cent stake in the company and Modern’s stake is put at 5 per cent valued at $1.25 million.
The deal would be partly funded by approximately $10 million raised through preferential placement of equity with ICICI Venture with the balance coming from borrowings and internal accruals.
Source:
