Infor, a global firm in business cloud software specialised by industry, is likely to be acquired by an affiliate of Koch Equity Development LLC, the investment and acquisition subsidiary of Koch Industries, Inc.
Koch has entered into a definitive agreement in a bid to acquire the remaining equity stake in Infor held by Golden Gate Capital. At the close of the transaction, Infor will now become a standalone subsidiary of Koch Industries. However, it will continue to be operated by the company’s current management team based in its headquarters in New York City.
Koch has been an investor in Infor since 2017. With the strength of its balance sheet and a AA corporate credit rating, Koch aims to quickly position Infor as one of the most well-capitalised companies in the field of technology. Koch companies have made over $26 billion in technology related investments in the past six years, transforming a global portfolio of businesses spanning multiple industries.
“Koch’s decision to acquire Infor is a strong endorsement of our product strategy and focus on creating innovative solutions for our customers,” said Kevin Samuelson, CEO of Infor. “As a subsidiary of a $110 billion+ revenue company that re-invests 90 percent of earnings back into its businesses, we will be in the unique position to drive digital transformation in the markets we serve. We are rapidly expanding our industry-specific CloudSuites and offering customer experiences and outcomes that are well beyond what is standard in enterprise software.”
“Software is no longer an industry vertical; it is a disruptive layer that is transforming every facet of society,” said Jim Hannan, Executive Vice President and CEO of Enterprises for Koch Industries. “As a global organization spanning multiple industries across 60 countries, Koch has the resources, knowledge and relationships to help Infor continue to expand its transformative capabilities.”
Infor has invested around $4 billion in product design and development for delivering industry-specific CloudSuites that help to solve the most challenging operational issues for more than 68,000 customers around the globe. Infor’s CloudSuites are cloud-native, industry-specific and built to assist companies to modernise and drive immediate, tangible impact. Infor’s key industries are spread across manufacturing, distribution, healthcare, public sector, retail and hospitality domain.
“Golden Gate Capital founded and began building Infor 18 years ago,” said David Dominik, Co-founder of Golden Gate Capital. “We are selling our remaining stake to Koch Industries, our partner in Infor for the last three years, because of the significant strategic value between Infor and Koch.” Golden Gate Capital Managing Director Rishi Chandna added: “Over the last several years working with Koch Industries and the management team, it is very apparent that there is a great partnership with Koch that will take the company to its next level of success. We are very proud to have worked with the management team in transforming Infor repeatedly over the years as the market has evolved.”
The transaction is subject to customary conditions and regulatory approvals and is expected to close in the first half of 2020. Financial terms of the transaction were not disclosed.