DLA Piper represented Centric Software, a venture capital-backed technology platform driving digital transformation with software innovation in the fashion, apparel, luxury and retail sectors, in entering into a definitive agreement to sell a majority stake to Dassault Systèmes.
The transaction aims to accelerate the digital transformation of companies seeking solutions for the increasingly complex development of collections that respond to today’s on-trend and on-demand consumers.
Headquartered in California's Silicon Valley and with offices in 13 countries, Centric Software provides product lifecycle management software solutions to more than 600 luxury and well-known retail brands. Centric's industry-specific collaborative PLM platform is used for merchandise planning, product specifications, materials management, product sourcing, cost scenarios, collection management, calendar management and quality management, on desktop and also optimized for mobile devices, to increase efficiency, accelerate time to market, and improve sales and product margins. Centric Software’s venture capital backers include Oak Investment Partners, Fung Capital USA, Masthead Venture Partners, Boston Capital Ventures, BancBoston Ventures and Silver Lake Waterman.
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 total consideration for the acquisition of 100 percent of Centric Software's equity will depend on Centric Software's revenue growth and profitability in the two years to come, and will be comprised of between four and six times 2019 and 2020 revenues.
The transaction was led by Centric Software’s CEO Chris Groves, VP Finance and Administration Alice Gerbel and senior counsel Ameet Matharu. The DLA Piper team representing Centric Software was led by partners Louis Lehot and Brandee Diamond (both Silicon Valley) and included partners Jeffrey Aronson, Nathaniel McKitterick, Ute Krudewagen, Cisco Palao-Ricketts, SeoJung Park (all Silicon Valley) and Margaret Keane(San Francisco); and associates Eduardo Blanco, Andrew Chan, Eric Chow, Leilani Lipa, Elham Marder, Malaz Kamal Moustafa, Syeda Nawroj,Philipp Tsukanov, Chung Wei (all Silicon Valley) and Ian Boardman (Sacramento). Union Square Advisors acted as exclusive financial advisor to Centric Software.
DLA Piper's global technology sector lawyers work across practice areas and offices to support technology clients at every stage of growth, from startups to fast-growing and mid-market businesses to mature global enterprises. Last year, according to Mergermarket's league tables for legal advisors, DLA Piper again earned the top ranking globally for overall deal volume and ranked first for technology M&A in the US. DLA Piper was highly ranked in other notable league tables for 2017, including placing in the top five of each M&A, venture capital and private equity category recognized by PitchBook – the only law firm to do so.
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