HCL Technologies To Acquire Geometric in All Share Deal

HCL Technologies on Friday announced the acquisition of Mumbai-based IT consulting firm Geometric in an all share deal. 

"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," said India's fourth biggest outsourcer. 

The deal excludes 3DPLM Software Solutions, a joint venture between Geometric and Dassault Systemes, in which the former owns 58 per cent stake. 

Geometric has more than 60 global clients in USA and Europe, majorly in automotive and industrial engineering segments. As of December 2015, it employed 2,606 people across 13 global delivery locations in the US, France, Germany, Romania, India and China. 

Mumbai-based Geometric is a specialist in the domain of engineering services and technologies. It was set up as a division of Godrej and Boyce in 1984 and was spun off into an independent company a decade later. 

Billionaire investor Rakesh Jhunjhunwala and his wife together own 19 per cent in the IT consulting company. 

For the fiscal years ended March 2014 & March 2015, Geometric posted revenues of Rs 787 crore and Rs 814 crore. For the nine-month period ended December 31, 2015, Geometric's revenues were Rs 674 crore. 

The transaction is expected to be earnings per share accretive, HCL Tech said. 

HCL Tech shares closed 0.8 per cent higher at Rs 820.70 on the Bombay Stock Exchange, while Geometric shares ended 4.3 per cent lower at Rs 196. The broader Sensex closed 0.3 per cent down.