A deal to acquire a significant minority stake in Infor Inc that will value the business software company at roughly $10 billion is nearing as the private investment arm of Koch Industries, the industrial conglomerate of the billionaire Koch brothers, is plans the takeover, reported Reuters quoting people familiar with the matter.
Koch Equity Development LLC, the Koch Industries affiliate that invests excess cash from the parent company, would make its largest investment if the deal is completed. It would also represent Koch's largest push into the technology sector.
Reuters did not name the sources who informed that the transaction could be announced as early as next week. The report further however cautioned that the talks could fall apart at the last minute as with any deal negotiation.
One of the sources said that Koch's investment will be a mix of preferred and common equity.
Infor and Koch Industries did not respond to requests for comment while Infor's majority owner, Golden Gate Capital, declined to comment.
Controlled by Charles and David Koch, two of the world's richest men, Koch Industries owns brands such as Brawny paper towels, Dixie Cups and Lycra.
Infor helps companies automate business processes and is based in New York. As opposed to selling one product to all its customers across industries, it offers specialized software licenses to specific sectors. It competes with Oracle ORCL.O, SAP SE and IBM Corp.
Alongside technology-focused private equity firm Vista Equity, which bought the majority of the company last year, Koch Equity previously invested preferred and common equity in Solera Holdings Inc, a technology provider to insurance companies. Home security firm ADT Corp, which was bought by Apollo Global Management earlier this year, is also a company which has received its investment in preferred and common equity.
Private equity firms such as Blackstone Group LP, CVC Capital Partners LTD CVC.UL, Leonard Green & Partners LP and Apax Partners LLP that had been vying to buy either a minority or majority stake in the company, would be undermined by Koch Equity taking a stake in Infor.
Though it would continue to control the company, the transaction would give Golden Gate Capital a chance to cash in on a portion of its long-held investment in Infor. Golden Gate has a perpetual buyout fund structure with no finite investment period or fund life.
There were also no comments available from Summit Partners, a private equity firm that also owns part of Infor.
Infor had retained Morgan Stanley to help the company explore options after receiving investment interest, the media had reported in September.
Since 2002, when it acquired one of its predecessor companies, Agilisys, Golden Gate has owned Infor. In 2004, when Agilisys acquired German firm Infor Business Solutions AG, the company changed its name to Infor.
As opposed to software installed on computers, Infor has sought to shift its business model to software-as-a-service, or software subscriptions delivered over the cloud to customers under Chief Executive Officer Charles Phillips, a former president of Oracle.
(Source:www.reuters.com)
Koch Equity Development LLC, the Koch Industries affiliate that invests excess cash from the parent company, would make its largest investment if the deal is completed. It would also represent Koch's largest push into the technology sector.
Reuters did not name the sources who informed that the transaction could be announced as early as next week. The report further however cautioned that the talks could fall apart at the last minute as with any deal negotiation.
One of the sources said that Koch's investment will be a mix of preferred and common equity.
Infor and Koch Industries did not respond to requests for comment while Infor's majority owner, Golden Gate Capital, declined to comment.
Controlled by Charles and David Koch, two of the world's richest men, Koch Industries owns brands such as Brawny paper towels, Dixie Cups and Lycra.
Infor helps companies automate business processes and is based in New York. As opposed to selling one product to all its customers across industries, it offers specialized software licenses to specific sectors. It competes with Oracle ORCL.O, SAP SE and IBM Corp.
Alongside technology-focused private equity firm Vista Equity, which bought the majority of the company last year, Koch Equity previously invested preferred and common equity in Solera Holdings Inc, a technology provider to insurance companies. Home security firm ADT Corp, which was bought by Apollo Global Management earlier this year, is also a company which has received its investment in preferred and common equity.
Private equity firms such as Blackstone Group LP, CVC Capital Partners LTD CVC.UL, Leonard Green & Partners LP and Apax Partners LLP that had been vying to buy either a minority or majority stake in the company, would be undermined by Koch Equity taking a stake in Infor.
Though it would continue to control the company, the transaction would give Golden Gate Capital a chance to cash in on a portion of its long-held investment in Infor. Golden Gate has a perpetual buyout fund structure with no finite investment period or fund life.
There were also no comments available from Summit Partners, a private equity firm that also owns part of Infor.
Infor had retained Morgan Stanley to help the company explore options after receiving investment interest, the media had reported in September.
Since 2002, when it acquired one of its predecessor companies, Agilisys, Golden Gate has owned Infor. In 2004, when Agilisys acquired German firm Infor Business Solutions AG, the company changed its name to Infor.
As opposed to software installed on computers, Infor has sought to shift its business model to software-as-a-service, or software subscriptions delivered over the cloud to customers under Chief Executive Officer Charles Phillips, a former president of Oracle.
(Source:www.reuters.com)