Infor is in for a windfall. The provider of software that companies across various industries use to manage their operations and supply chains is set receive more than $2 billion from Koch Equity Development LLC, or KED, the investment arm of Koch Industries Inc.
Infor sells cloud-based enterprise resource planning, or ERP, software that companies use for such tasks as managing their inventory and financial records. Its clients include apparel brands, aerospace, technology and pharmaceutical businesses, including many that also use Infor’s GT Nexus global e-commerce network to buy and sell products.
“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,” Infor CEO Charles Phillips says.
Over the past five years under Phillips’ direction, Infor has invested about $2 billion in the design and development of more than 400 new products, including thousands of features tailored for individual industries, within its CloudSuite line of business software. Part of that investment went into its Dynamic Science Labs, located next to the campus of the Massachusetts Institute of Technology, where a team of more than 70 PhD-level scientists develop applications for predictive analytics, machine learning, managing retail assortments, optimizing inventory, and planning segmented pricing for customers.
Infor has also built out its GT Nexus global commercial network to connect more than 28,000 businesses, including manufacturers, distributors, banks, logistics providers, freight brokers and shipping carriers.
With the capital infusion from KED, Infor plans to “accelerate innovation” and expand distribution of its products, Infor says.
Infor’s existing shareholders, including Golden Gate Capital, Summit Partners, and Management will maintain control of the company. KED will have the right to appoint four of nine directors on the board of Infor’s parent company.
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 Infor.
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.
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