Dassault Systèmes and Geometric announced that they have reached an agreement whereby Dassault Systèmes will acquire full ownership of 3DPLM Software Solutions Ltd. (3DPLM), its joint venture in India with Geometric Limited.
3DPLM, formed in 2002, comprises a talented team of over 2000 employees in India working on research and development tasks and services related to Dassault Systèmes’ 3DEXPERIENCE platform and brand applications. Becoming a fully integrated part of Dassault Systèmes’ global R&D activity will enhance the contribution and value-add of 3DPLM to Dassault Systèmes development projects, while offering greater career development opportunities for its personnel. Moreover, the strategic next phase in 3DPLM calls for tighter linkages that will translate in the immediate and medium term to the need for investments in the technology platforms, and a resultant potential change in the current business model of 3DPLM. .
“It has truly been an exciting relationship, which began in 2002,” said Manu M. Parpia, Managing Director and CEO, Geometric Ltd. “Over the years, Geometric Ltd. has delivered value to Dassault Systèmes while, at the same time, its shareholders benefitted from a steady growth in earnings from this unique relationship. I take this opportunity to thank Dassault Systèmes for the partnership and wish 3DPLM employees a very bright future as a part of Dassault Systèmes.”
“Throughout our 14-year partnership with Geometric, we have together developed competitive R&D and services at 3DPLM with dedicated and passionate people, which have become important assets for our global R&D. We thank Geometric management for their sustained support”, said Dominique Florack, Senior Executive Vice President, Research & Development, Dassault Systèmes. “The full integration of 3DPLM into Dassault Systèmes is the result of this continuous investment and very successful partnership and also marks the strategic next phase in the contribution of 3DPLM in our strategic R and D operations. I am very happy to welcome these world-class R&D teams and management leaders to Dassault Systèmes.”
The transaction is part of a composite scheme whereby Geometric’s business is being transferred to HCL Technologies, while simultaneously merging Geometric Ltd into 3DPLM thereby giving 100% ownership of 3DPLM to Dassault Systèmes. The transaction is being undertaken through a court approved scheme which is subject to shareholder, High Court and other statutory approvals. In exchange for the ownership in 3DPLM, shareholders of Geometric Ltd will receive one (1) listed redeemable preference share of Rs. 68 in 3DPLM against every one (1) share of Geometric Ltd, with a 7% pa preferential dividend. Closing is expected to take place during the fourth quarter of 2016.
JM Financial Singapore Pte. Ltd. acted as the exclusive corporate finance advisor to Geometric Ltd, and JSA acted as the exclusive legal advisor to Geometric Ltd and Dassault Systèmes.