Geometric announced that its German subsidiary, Geometric Europe GmbH, has acquired a 100% stake in 3Cap Technologies (3Cap), a specialist in electronics engineering, primarily for the automotive industry, based near Munich, Germany.
3Cap employs over 110 people, all of whom work out of Germany. It has seven customers, which are mostly Tier 1 automotive suppliers. 3Cap offers a variety of services to its customers ranging from embedded systems development verification and validation, and calibration in the areas of powertrain and chassis.
"This acquisition represents an important step in our strategy to provide greater capability and more comprehensive solutions in the digital product realization space to our customers," said Manu Parpia, CEO of Geometric. "Geometric has strength in engineering software and mechanical engineering services, with almost 70% of its revenues coming from the U.S. market. The use of embedded systems is increasing in all our customer products. This acquisition fills a major gap in the solutions we offer to our customers, while at the same time strengthening our presence in Europe."
3Cap was founded in 2004 by Henri Sadoune, a French national based out of Munich, Germany. Sadoune has entered into a long-term agreement with Geometric, and will take responsibility for all embedded systems activities, including Geometric's existing embedded systems projects.
3Cap is valued at Euros 11 million, of which Euros 7.5 million will be paid up front. Geometric is funding the acquisition out of accrued cash. The balance payments will be subject to earn-out under mutually agreed terms and conditions over a maximum period of three years.
For more information, visit Geometric.
Sources: Press materials received from the company and additional information gleaned from the company's website.