GSSCL acquires Modern Engineering's Engineering Division

New Delhi, Oct 11 (UNI) Geometric Software Solutions Company Ltd (GSSCL) and Detroit-based Modern Engineering's Engineering Division today merged to form a global engineering solutions provider.

The net equity value of 25 million dollars is funded by the BSSCL's contribution of 23.75 million dollars representing 95 per cent stake in the combined company and 1.25 million dollars investment by Modern's executive management for five per cent stake.

''The merger of Modern Engineering's Engineering Division and Geometric represents a significant step in the realisation of the true potential of global engineering,'' GSSCL Managing Director and Chief Executive Officer Ravi Gopinath said.

The combined company's increased scale, scope and global capabilities will enhance its long-term value for shareholders, customers and employees alike, Mr Gopinath said.

''The merger provides us the mechanism to deliver a larger and more diverse set of services to our clients worldwide,'' Global Engineering at Modern Engineering Senior Vice President Michael McConnell said.

Approved by the board of directors of both companies, the merger will build upon the complementary strengths of each company to create a unified global leader in the engineering industry.

Besides offices in India, Germany, France, Singapore, Japan, China and Romania, they will also start eighth office in North America.

The company's contribution is funded by approximately 10 million dollars raised through preferential placement of equity with ICICI Venture and balance through borrowings and internal accruals.

The engineering services business of Modern Engineering has a current annual revenue of about 40 million dollars.

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