Geometric Software's acquisition of Modern Engineering to be completed by month end

Geometric Software has acquired engineering division of Modern Engineering for $32 million.

Manu Parpia, vice chairman and executive director, Geometric Software says that Geometric intends to complete the acquisition around the end of this month. Parpia hopes that once the acquisition comes through it will help reach $100-million turnover. CNBC-TV18 shares with domain-b its interview with Parpia:

This integration by when is it going to be complete and would it help you to attain a turnover of about $100 million by 2007?
The acquisition we target to complete around the end of this month approximately. That is the target date and it will help us. There were a couple of hiccups on the way so it did get a little delayed.

Certainly in the last quarter the run rate will be in excess of $25 million, provided the acquisition comes through. So it will help us to reach $100 million. But for the year as a total it remains to be seen.

Is this division profitable?
It is profitable and we have given the information, its EBITDA is about Rs3 million in this.

How do the margins compare? Will you be able to improve your margins because of this acquisition?
Margins clearly are not in line with Geometric otherwise the pricing would have been in line with Geometric. It represents the base on which we can now do several things. First of all build a solid engineering services practice, we have delivery centres now across the globe. So we are uniquely positioned.