Koch to invest over $2 billion in Infor
The investment will aim to provides growth capital for cloud software to drive digital transformation across Industries
Infor has reached a definitive agreement in which Koch Equity Development (KED), the investment and acquisition subsidiary of Koch Industries, has agreed to make an investment of more than $2 billion in the company.
The investment aims to provide Infor access to additional growth capital to accelerate innovation, expand distribution, and continue disrupting the enterprise applications industry. KED's investment will strengthen Infor's capital base and provides an entrée into a large ecosystem of businesses contemplating digital transformation.
The Infor management team is headed by chief executive officer Charles Phillips, who is leading the company into a new phase of growth, investment, and innovation. He said: "Koch is one of the largest private companies in the world with diversified holdings and immense resources to support the next exciting phase of growth at Infor and we are thrilled to have their support.
"Some of the largest companies in the world have approached Infor looking for a modern alternative to the legacy options available for mission critical business applications. Infor has the scale and capital to provide a digital platform for the Global 5000."
Under Phillips' leadership, Infor invested approximately $2bn in product design and development over the last five years and delivered more than 400 new products, 1,700 integrations, and 16,000 industry features in its CloudSuite product line. Infor now has 15,000 employees and operates in more than 170 countries.
Infor's cloud strategy uses Amazon Web Services, enabling the company to invest in deep industry functionality with capital that would otherwise be needed to maintain its own data center infrastructure. Infor's broad set of applications running on a hyper-scale cloud with data science and design provide a foundation for modernising companies in healthcare, fashion, retail, distribution, public sector, and discrete and process manufacturing.
This transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in early 2017. The KED investment will be a combination of preferred and common equity.
Morgan Stanley and Bank of America Merrill Lynch are serving as Infor's lead financial advisors, and Gibson Dunn is serving as outside legal counsel. Credit Suisse also provided financial advice to the company. Kirkland & Ellis LLP is serving as outside legal advisor to Golden Gate and Summit Partners. Rothschild, Inc. is serving as exclusive financial advisor to KED, and Jones Day is serving as outside legal counsel.