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With Centric Software Deal, Dassault Systèmes Aims to Help Brands Meet New Demands

Dassault Systèmes’ acquisition of PLM provider Centric Software late last week is a move the company said will help meet new market demands for greater speed and more trend-right products.
The software company said the deal will help fashion and luxury brands “accelerate” their digital transformation efforts while allowing for more innovation. “Centric Software’s PLM solutions generate fast ROI for fashion brands to respond to on-trend, on-demand consumers,” the company said in a statement.
The deal calls for Dassault Systèmes taking a majority stake in the private software company. “Under the terms of the agreement, Dassault Systèmes will acquire for cash a majority ownership of Centric Software, which will be comprised of between 58 and 69 percent, depending on the Centric Software shareholders’ election, and an advance payment on the acquisition of the remainder of the shares, which will take place in 2020 and 2021,” the company said.
A dollar amount on the deal was not disclosed. However, Dassault Systèmes said it would consider a total acquisition of the company — pending sales and profitability growth, and would be “comprised of between four and six times 2019 and 2020 revenues.”
Shearman & Sterling LLP served as legal counsel to Dassault Systèmes while Union Square Advisors LLC

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