Koch Industries to buy Infor via an equity deal with Golden Gate Gaptial

Infor

New York, USA: Infor, a business cloud software provider said that Koch Industries has entered into a definitive agreement to acquire Golden Gate Capital held remaining equity stake in Infor.

The transaction is subject to customary conditions and regulatory approvals and is expected to close in the first half of 2020. Although financial terms of this deal were not disclosed, some media report said that the deal’s worth is close to $13 billion.

Koch Equity Development LLC, the investment and acquisition subsidiary of Koch Industries, Inc., has signed a pact buy Golden Gate Capital’s remaining equity stake in Infor.

Infor will become a Koch Industries’ standalone subsidiary on completion of this deal and the company’s current management team based in New York City headquarters will continue to operate it.

In addition to being a key enterprise customer, Koch has been an investor in Infor since 2017. With the strength of its balance sheet and a AA corporate credit rating, Koch intends to quickly position Infor as one of the most well-capitalized companies in technology.

Koch companies have made more than $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 – Infor.

“As a subsidiary of a $110 billion+ revenue company that re-invests 90% 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,” added Kevin.

“Software is no longer an industry vertical; it is a disruptive layer that is transforming every facet of society,” said Jim Hannan, EVP and CEO – 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,” added Hannan.

Infor has invested approximately $4 billion in product design and development to deliver industry-specific CloudSuites that solve the most challenging operational issues for over 68,000 customers around the globe.

“Golden Gate Capital founded and began building Infor 18 years ago.We are selling our remaining stake to Koch Industries, our partner in Infor for the past three years, because of the significant strategic value between Infor and Koch,” said David Dominik, Co-Founder – Golden Gate Capital.

“Over the past 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,” said Rishi Chandna, MD – Golden Gate Capital.

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