An affiliate of Koch Equity Development, the investment and acquisition subsidiary of Koch Industries, has entered into a definitive agreement to acquire the remaining equity stake in Infor held by Golden Gate Capital. At the close of the transaction, Infor will become a standalone subsidiary of Koch Industries and will continue to be operated by the company's current management team from its headquarters in New York City.
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, according to the company.
"Koch's decision to acquire Infor is a strong endorsement of our product strategy and focus on creating innovative solutions for our customers," Infor CEO Kevin Samuelson said in a statement. "As a subsidiary of a $110 billion-plus revenue company that reinvests 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."
Infor has invested approximately $4 billion in product design and development to deliver industry-specific CloudSuites that 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 help companies modernize and drive immediate, tangible impact. Infor's key industries include manufacturing, distribution, healthcare, public sector, and retail in addition to hospitality.
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.
