Why Koch Industries Is Buying The Remaining Stake In Infor

By Noah Long ● February 9, 2020
  • An affiliate of Koch Equity Development entered a deal to buy the remaining stake in Infor held by Golden Gate Capital

Infor, a global leader in business cloud software specialized by industry, announced recently that an affiliate of Koch Equity Development LLC 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 the company will continue to be operated by the company’s current management team from its headquarters in New York City.

“Koch’s decision to acquire Infor is a strong endorsement of our product strategy and focus on creating innovative solutions for our customers,” said Infor CEO Kevin Samuelson. “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 CloudSuites and offering customer experiences and outcomes that are well beyond what is standard in enterprise software.”

Along with being a key enterprise customer, Koch has been an investor in Infor since 2017. And 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.  Koch companies have made over $26 billion in technology-related investments in the past 6 years, transforming a global portfolio of businesses spanning multiple industries.

“Software is no longer an industry vertical; it is a disruptive layer that is transforming every facet of society,” added Jim Hannan, executive vice president and CEO of enterprises for Koch Industries. “As a global organization 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 CloudSuites that solve the most challenging operational issues for over 68,000 customers around the globe. And Infor’s CloudSuites are cloud-native, industry-specific, and built to help companies modernize and drive immediate tangible impact. Some of Infor’s key industries include manufacturing, distribution, healthcare, public sector, retail, and hospitality.

“Golden Gate Capital founded and began building Infor 18 years ago,” explained David Dominik, co-founder of Golden Gate Capital. “We are selling our remaining stake to Koch Industries, our partner in Infor for the past three years, because of the significant strategic value between Infor and Koch.” Golden Gate Capital Managing Director Rishi Chandna added: “Over the past several years working with Koch Industries and the management team, it is very apparent that there is 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.”

The deal is subject to customary conditions and regulatory approvals. And the deal is expected to close in the first half of 2020. The financial terms of the transaction were not disclosed.