Geometric Software buys Modern for $23.75 mn

New Delhi, Nov 2: Geometric Software Solutions Inc, a wholly-owned subsidiary of Geometric Software Solutions Company Ltd, today said it has bought 95 per cent equity shares of Modern Engineering Inc for 23.75 million dollars.

The balance 5 per cent shares of Modern are held by MMG Group LLC, comprising of management group of Modern.

The acquisition was financed through an equity investment of 14 million dollars and a loan of 1.75 million dollars by the company, a statement said.

In addition, a term Loan worth 8 million dollars was taken from Citibank N.A.

Modern has a working capital line of credit of 7 million dollars which is being refinanced by ICICI Bank UK Ltd and the company has taken a working capital loan of 4.5 million dollar for the purpose.

Thus, the company and its subsidiaries will have a term loan of 8 million dollars and working capital loans of 11.5 million dollars on its balance sheet.

The financials of Modern Engineering Inc will be consolidated with that of the company effective from November 1, 2006.

UNI