Infor to ramp up expansion with $2bn investment
17 November 2016 | News | Source: Leonie Barrie
Business software supplier Infor is planning to ramp up its growth after securing a $2bn investment from private equity firm Koch Equity Development.
The deal will see the investment and acquisition subsidiary of Koch Industries – the second largest privately-held company in the US with annual revenue of around $100bn – take a "significant" stake in Infor, which provides tools for a range of industries including fashion.
The capital injection will enable Infor to continue spending on acquisitions, expanding distribution and on shifting its business model to software subscriptions delivered over the cloud, which offers a modern alternative to legacy options for key business applications.
Recent deals have seen the company buy Predictix, a cloud-based predictive and prescriptive analytics solution for retailers, as well as retail software developer Starmount, in a move to help accelerate delivery of the Infor CloudSuite Retail applications. And last year it acquired the GT Nexus global commerce platform for US$675m.
In July the company also unveiled its latest Fashion Product Lifecycle Management (PLM) tool, designed to help retail companies with faster innovation, quicker response times and more informed decision-making.
Infor booked double-digit growth in its last quarter, fuelled by a 130% annual increase in software-as-a-service (SaaS) revenue. Indeed, more than half of its software revenues are now derived from cloud applications, the company says.
"The support we are providing to Infor marks one of the largest investments KED has ever made and demonstrates the confidence we have in Infor's technology, team and business model," said Matt Flamini, KED's president.
KED will have the right to appoint four of nine directors on the board of Infor's parent company, but Infor's existing shareholders, including Golden Gate Capital, Summit Partners, and Management will maintain control of the company. The deal is expected to close in early 2017.