Koch Equity Development has made a move to acquire the remaining equity stake in Infor that was held by Golden Gate Capital.
Koch Equity Development is an affiliate of Koch Industries, both of which are customers and investors in the cloud enterprise resource planning (ERP) software company.
According to sources cited by TechCrunch, the deal is worth about US$13 billion. The transaction is expected to close in the first half 2020 with Infor becoming a standalone subsidiary of Koch Industries.
Koch said Infor will continue to operate under the current management team from its US headquarters in New York.
Infor CEO Kevin Samuelson said as a subsidiary of a company that re-invests 90 per cent of earnings back into its business, it will be in a unique position to drive digital transformation in the markets it currently serves.
“We are rapidly expanding our industry-specific CloudSuites and offering customer experiences, and outcomes that are beyond what is standard in enterprise software,” Samuelson said. “Koch’s decision to acquire Infor is a strong endorsement of our product strategy and focus on creating innovative solutions for our customers.”
Additionally Koch Industries CEO of enterprise Jim Hannan said Koch has the resources, knowledge and relationships to help Infor expand its ‘transformative’ capabilities.
Furthermore, Golden Gate Capital managing director Rishi Chandna added it was selling its remaining stake in Infor to Koch due to the significant strategic value between the two companies.
“Over the last 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 the next level of success," Chandna said. "We are very proud to have worked with the management team in transforming Infor repeatedly over the years as the market has evolved.”
In the past six years, Koch Industries said it has made more than US$26 billion in technology related investments.