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Koch Industries to invest $2b in Infor.

Koch Industries will invest $2 billion in Infor, a provider of applications specialized by industry and built for the cloud.

The investment will be made through Koch Equity Development LLC (KED), the investment and acquisition subsidiary of Koch Industries, and will enable Infor "to accelerate innovation, expand distribution, and continue disrupting the enterprise applications industry."

"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," said Charles Phillips, CEO of Infor.

"Some of the largest companies in the world have approached Infor looking for a modern alternative to the legacy options available for mission critical business applications. Infor has the scale and capital to provide a digital platform for the Global 5000."

"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.

The investment by KED significantly strengthens Infor's capital base and provides an entree into a large ecosystem of businesses contemplating digital transformation.

Infor became the first company to move mission critical industry applications to the cloud, and now counts more than 66 million users of its cloud applications.

The company's double digit revenue growth in its most recent quarter was fueled by a 130 percent annual increase in SaaS revenue; more than half of Infor's software revenues are now derived from cloud applications.

Infor's unique cloud strategy uses Amazon Web Services, enabling the company to invest in deep industry functionality with capital that would otherwise be needed to maintain its own data center infrastructure.

Infor's broad set of applications running on a hyper-scale cloud with cutting-edge data science and design provide a foundation for modernizing companies in healthcare, fashion, retail, distribution, public sector, and discrete and process manufacturing.

Phillips is leading the company into a new phase of growth, investment and innovation.

Under his leadership, Infor invested approximately $2 billion in product design and development over the last five years and delivered more than 400 new products, 1,700 integrations, and 16,000 industry features in its CloudSuite product line. Infor now has 15,000 employees and operates in more than 170 countries.

"Over the last 15 years, Infor has grown from a small company to one of the most significant enterprise software companies in the world and it's been an amazing thing to be a part of," said Infor board member Jim Schaper.

"We are extremely pleased with the progress the Infor team has made in scaling and executing into the massive opportunity in enterprise technology applications," said David Dominik, Managing Director of Golden Gate Capital, which made its first investment in Infor in 2002.

"KED's investment is a tremendous endorsement and we look forward to working together with them and supporting management as they continue delivering industry-leading software applications to a growing list of world class customers."

"We remain a meaningful investor in Infor and will continue to support the company in the years ahead," added Rishi Chandna, Managing Director at Golden Gate Capital.

The KED investment will be a combination of preferred and common equity. 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 the company.

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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Title Annotation:TECHNOLOGY
Comment:Koch Industries to invest $2b in Infor.(TECHNOLOGY)
Publication:Real Estate Weekly
Date:Nov 23, 2016
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