Infor has confirmed that the investment and acquisition subsidiary of Koch Industries — Koch Equity Development will be acquiring the remaining equity stake in Infor held by Golden Gate Capital. At the closing of the deal, 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. Although the financial terms of the transaction haven’t been disclosed yet, 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-capitalised companies in technology. The sale of Infor is expected to close later this year.
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 that focuses 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% 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 cloud suites 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 rather 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 organisation 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 approximately $4 billion in product design and development to deliver industry-specific cloud suites that solve the most challenging operational issues for over 68,000 customers around the globe. Infor’s CloudSuites are cloud-native, industry-specific and built to help companies modernise and drive immediate, tangible impact. Infor’s key industries include manufacturing, distribution, healthcare, public sector, retail and hospitality.
“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 further added, “Over the last several years with Koch Industries and the management team, it is very apparent that there has been 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.”