Lectra Focuses On China; Acquires Lacent
The 2004 China International Sewing Machinery and Accessories Show (CISMA), held recently in
Shanghai, was a success for Francebased Lectra, supplier of textile cutting software and hardware
systems.The company said it received signed orders for new systems worth more than $6 million at
the show, representing a 50-percent increase over orders signed during the 2003 event. Daniel
Moreau, executive vice president, said China is Lectra’s No. 1 market for new systems for the first
six months of 2004. He added that the company’s goal is to double its revenues in China in the next
two years and increase its market share in the country from 35 percent to 45 percent.
Representatives from Lecta and China’s National Institute of Standardization signed a letter
of intent for Lectra to participate in a campaign to measure the Chinese population.During the
show, Lectra also signed a letter of intent with the China National Institute of Standardization to
participate in a campaign to measure the Chinese population aged between three and 17.
TitaniumFashion, a new single-ply cutting system, also was unveiled at the show.In related news,
Lectra recently has purchased Lacent Technologies Inc., Canada. The financial terms include the
acquisition of 100 percent of Lacent’s fully diluted capital. Lectra paid the transaction in full
at closing with no bank financing. Other agreement details were not disclosed.
Lectra’s booth at CISMA Lacent, a laser cutting systems manufacturer, was established in 1992
to serve three market segments: automotive airbags; automotive seating and trim; and industrial
textiles. It holds about 25 percent of the world’s laser cutting system market share. The company
has a strong presence in North America and Europe and recently expanded into Asia.Lectra said it
intends to develop and leverage significant synergies from the two companies’assets and
competencies. Moreover, Lectra said the acquisition will provide Lacent customers with access to
Lectra’s sales and service organization around the world.“The acquisition of Lacent strengthens our
world leadership in the automotive industry, in which we have made our strongest growth in 2003,”
said Daniel Harari, CEO of Lectra.
Winter 2004