Lectra and Launchmetrics join forces

The big news broke yesterday! The French company Lectra is venturing into acquiring the American platform Launchmetrics, an initiative aimed at strengthening its position in the fashion market by establishing "additional strategic links in the value chain of its clients". For those unfamiliar with these names, here's a brief introduction to both companies. On one side, Launchmetrics, often called the "GPS of fashion," has been operating since 2016 as a data and services platform dedicated to the fashion industry. Over the years, the company has emerged as a key player in public relations management and media impact measurement in the fashion industry. On the other side, Lectra, a multidisciplinary company, specializes primarily in software and equipment for the textile, fashion, and furniture industries. Founded in 1973, it has developed solutions to assist fashion professionals in fabric design and cutting. Over the years, Lectra has expanded its offerings to other sectors, becoming a major player in textile industry technology with a global presence.

The total acquisition of Launchmetrics by Lectra is planned in several stages. Initially, Lectra will pay approximately 85 million dollars to acquire 50.3% of the company. Then, it plans to acquire the remaining capital of the American company between 2025 and 2030, in five annual installments, for an estimated total amount between 200 and 240 million dollars. Although this amount may seem alarming to the average person, analysts believe it aligns with the anticipated growth of Launchmetrics.

This merger will benefit both companies by significantly strengthening their presence in the SaaS (Software as a Service) domain, a more defensive and profitable business model. The operation aligns perfectly with Lectra's development strategy focused on the fashion market, complementing its expertise in textile software and equipment. By integrating Launchmetrics' recurring activities, especially its SaaS platform dedicated to digital marketing in the fashion and beauty sectors, Lectra diversifies its revenue sources and consolidates its position by capitalizing on the expected growth of the acquired company. However, despite the positive prospects of this acquisition, Lectra's stock experienced a 5.4% decline in the aftermath. The future of this merger is, therefore, closely watched.