3D design software maker Dassault Systemes said it will acquire full ownership of 3DPLM Software Ltd (3DPLM), its joint venture with Indian IT firm Geometric.
Last week, India's fourth largest software services firm HCL Technologies had said it will buy most of Geometric in a share swap deal estimated to be about USD 150-200 million.
The deal, however, excluded the 58 percent which Geometric owned in 3DPLM Software Solutions.
"The transaction is part of a composite scheme whereby Geometric's business is being transferred to HCL Technologies Ltd, while simultaneously merging Geometric Ltd into 3DPLM thereby giving 100 percent ownership of 3DPLM to Dassault Systemes," Dassault Systemes said in a statement.
The transaction is being undertaken through a court- approved scheme which is subject to shareholder, High Court and other statutory approvals, it added.
"In exchange for the ownership in 3DPLM, shareholders of Geometric will receive one listed redeemable preference share of Rs 68 in 3DPLM against every one share of Geometric, with a 7 percent per annum preferential dividend," it said.
Closing is expected to take place during the fourth quarter of 2016, it added.
3DPLM being already consolidated in Dassault Systemes financial statements and the closing of this transaction will be neutral on its revenue and expenses.
3DPLM, formed in 2002, comprises a team of 2,000 employees in India working on research and development and services related to Dassault Systemes' 3DEXPERIENCE platform and brand applications.
Becoming a fully integrated part of Dassault Systemes', global R&D will enhance the contribution and value-add of 3DPLM to Dassault Systemes development projects.
"Over the years, Geometric has delivered significant value to Dassault Systemes while, at the same time, its shareholders benefitted from a steady growth in earnings from this unique relationship," said Manu M Parpia, Managing Director and CEO of Geometric.
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