Lectra acquires majority stake in Launchmetrics

Lectra, a major player in the fashion, automotive and furniture markets, has announced the acquisition of a majority stake in US company Launchmetrics, a provider of cloud-based marketing solutions. The transaction, which involves the purchase of 50.3% of Launchmetrics, will occur in January 2024 for approximately $85 million, subject to the company’s 2023 recurring revenue and EBITDA.

Founded in 2015, Launchmetrics leverages Industry 4.0 technologies such as artificial intelligence and cloud computing to focus on brand performance analysis in the fashion, lifestyle and beauty sectors. The company’s platform includes seven modules that help brands optimize the launch of marketing campaigns and measure their effectiveness. Launchmetrics reports 2023 revenue of approximately $45 million and adjusted EBITDA of approximately $5 million.

Launchmetrics founder and CEO Michael Jaïs said the partnership with Lectra will accelerate the global scale of its services. Lectra Chairman and CEO Daniel Harari emphasized that this acquisition complements Lectra’s strategic expansion in the fashion market and is in line with the company’s 2023-2025 strategic roadmap.

The total acquisition price is expected to be between $200 and $240 million, with plans to buy back remaining capital and voting rights between 2025 and 2030. The move is expected to spur growth in recurring revenue and EBITDA numbers over the period 2024-2029.

Bpifrance, a participating shareholder in Launchmetrics, will sell part of its shares in the transaction but will retain its stake in the company until 2027. This acquisition is Lectra’s seventh in the past six years and further strengthens its commitment to promoting Fashion Industry 4.0.

Founded in 1973 and reporting 2022 revenue of €522 million, Lectra provides industrial intelligence solutions, including software, cutting equipment and data analysis services. The company is listed on Euronext and is included in several indices including the SBF 120 and CAC Technology. The information in this article is based on Lectra’s press release.

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