Infor

Performance indicators

2018: Revenue exceeded $3 billion

For the tax year 2018, Infor received more than $3 billion in revenue and implemented the migration of ERP solutions to public clouds for entire industry segments. At the same time, Infor CloudSuite solutions have become the basis for the digital transformation of the business of more than 9,500 companies in 110 countries. Infor software products cover all key areas: finance, manufacturing, supply, human resources management and customer interaction.

Over the past five years, Infor has continuously increased its market share in cloud applications. As of January 2019, about 70% of revenues from licenses ON for are revenues from the use of cloudy applications.

Infor has managed to increase its presence in major sectors of the economy, such as healthcare, manufacturing, retail, hospitality and government services. According to the company's statement, 8 out of 10 fashion brands, 19 out of 20 automotive leaders and about 72% of the total number of hospitals use Infor software products in the United States.

Infor in Russia

Main article: Infor Russia

Vendor has been present on the Russian market since the beginning of 2000. On June 1, 2012, the Russian office of the company was opened.

Partner Network

Infor Partner Network (IPN) offers Infor partners tools, resources, and rewards to help them quickly build a profitable and stable Infor sales business. Partners will have access to resources for all stages of the trading cycle, including planning, sales preparation, demand promotion, sales, delivery and service.

In general, the Infor Partner Network provides three levels of partnership (Associate, Silver and Gold) to rank trading partners according to their performance. Partners can upgrade within this framework based on their specialization, certification, and sales performance. At the same time, all Infor trading partners will have access to resources and tools such as a commission system, training, certification, employee adaptation programs, as well as the Market Development Funding (MDF) program to help partners ensure profitability of investments in their business.

History

2021

Completion of acquisition of Infor EAM business by Hexagon AB

Hexagon AB, an expert in digital reality solutions, announced on December 7, 2021 the completion of the previously announced acquisition of its international EAM business from Infor (Enterprise Asset Management; Enterprise Asset Management). Before closing the transaction, all necessary regulatory approvals were received and other standard requirements were met. More details here.

Sale of the EAM business to Hexagon AB

On July 6, 2021, Infor announced to TAdviser that it had entered into an agreement to sell its international EAM business (Enterprise Asset Management) to Hexagon AB. The value of the transaction will amount to approximately $2.75 billion in cash, shares, as well as in the form of strategic interaction between companies in terms of servicing common customers. The structures will continue to work independently of each other until the transaction is directly completed, subject to its approval by regulatory bodies.

Photo Source: leadeventsph.com

The strategic relationship with Hexagon will form two subsidiaries of Koch Industries - Infor and Koch Equity Development. As a result of the transaction, the Koch group will also receive a stake in Hexagon. In addition, Hexagon's main shareholder, MSAB, intends to submit the candidacy of Brett Watson, president of Koch Equity Development, to the appointment committee for nomination to the Hexagon board of directors in a short time after the closing of the transaction.

As the EAM market progresses, the traditional Asset Performance Management (APM) concept moves from the traditional asset management formats of an enterprise to the production asset management (APM) concept. Customers need increasingly sophisticated solutions to ensure high efficiency of production assets throughout the lifecycle, from development to operation.

Selling the EAM business and entering into a strategic agreement with Hexagon will allow Infor to:

• Integrate the capabilities of one of the EAM solutions with Hexagon's digital reality capabilities - including touch technologies, specialized software products, and development for automated control systems - to deliver high-end business results for customers.
• Focus on a strategy to improve their industry-specific cloudy ERP solutions (CloudSuites) that provide customers with long-term operational benefits and planning capabilities.

Some Koch companies are regular users of Infor EAM and Hexagon solutions for optimizing corporate projects and operating industrial facilities. To ensure that Koch Group enterprises have access to additional technological capabilities throughout the life cycle of their production assets - from the initial stages of development to the day-to-day operation period - the Koch Group and Hexagon have signed an agreement of intent to further expand the use of Infor EAM and Hexagon solutions within the consortium.

This is a mutually beneficial situation for Infor and Hexagon, our customers and employees. Infor will be able to redouble its efforts to improve innovative industry solutions that help our customers solve the most serious business problems. At the same time, we will be able to build partnerships with a company that is in a special position: they have everything necessary to stimulate further digital transformation in companies using Infor EAM, by combining the capabilities of EAM and Hexagon products in the field of digital reality, Infor CEO Kevin Samuelson believes.

By integrating Infor EAM's industry-specific asset management capabilities with the capabilities of our digital reality solutions and platforms, we can increase asset utilization beyond what EAM products themselves can offer - from improved preventive services and reduced energy consumption to other sustainable production initiatives. Infor EAM customers and partners can be confident that the transition will be smooth and will bring significant synergies in terms of accelerating growth and opportunities. We plan to cover various industry verticals and to strengthen our presence in markets that have not received sufficient attention, for example, in the Asia-Pacific region, noted Ola Rollen, President and CEO of Hexagon.

Infor's EAM division as of July 2021 has about 500 people working around the world. After completion of the transaction, it will be part of the industry corporate solutions area and will serve all divisions of the company focused on phonodomous industries. These include industrial production and facilities, extractive industries, farms, autonomous transport systems, buildings and structures, infrastructure of various levels, national and municipal support, and military industry. Infor will initiate a process of consultation with employees and their representatives regarding the transaction in accordance with applicable law.

Goldman Sachs & Co provides financial support for the transaction. LLC и Rothschild Inc. The legal adviser to Infor and the Koch group is Jones Day.

In November 2021, it was announced the closure of the transaction. Infor's EAM business is expected to generate $184 million in revenue in 2021, of USA which more than 70 percent will be regular revenues, and the adjusted operating margin after integration will exceed 40 percent. Infor's EAM business stimulates the transition of its customer base to a model whose SaaS revenue share in 2021 is expected to exceed 40 percent (which will be more than half of all sales revenue software) with an average annual growth rate (CAGR) of about 35 percent over three years.

2020

Completion of Koch Industries Acquisition Procedures

On April 8, 2020, Infor announced the completion of procedures for the acquisition of the remaining stake in the Golden Gate Capital fund by Koch Industries, Inc. Infor works in the field of cloud solutions development with a deep industry specialization, for a fairly long time played the role of the main driver in the technological transformation of the Koch group of companies. Over the past six years, the group has invested more than $26 billion in the technology segment and has carried out major transformations within all areas of its own business, which cover a variety of sectors of the economy. Since 2017, the Koch group has invested in Infor and at the same time was a key client of the company: it has implemented Infor solutions in its divisions for managing the enterprise, personnel, supply chains and supplies, company fixed assets and finance.

For the Koch group of companies, the acquisition of Infor opens up additional opportunities to accelerate the digital transformation of the business. And Infor gets additional resources and access to a pool of industry knowledge. This will help the company increase its competencies in the development of critical solutions and business applications for manufacturing companies, retailers, distributors and enterprises from other segments of the economy.

In turn, with Infor's healthcare solutions such as Healthcare Operations Platform and Interoperability Solutions, Koch Corporation will increase its presence in the medical technology market. As of April 2020, companies from the Koch group are already engaged in the production of devices connected to the Internet, cleaning medical substances and supplying hospital organizations.

Since the close of the deal, Infor has become an independent division of Koch Industries, which will retain its current management team and headquarters in New York. At the same time, Infor is among the leaders in capitalization among technology companies.

Recently, Infor has invested about $4 billion in the design and development of Infor CloudSuite solutions and ensuring their deep industry specialization. These products help solve the most non-trivial operational problems of more than 68,000 customers around the world.

Joining the Koch Industries group of companies opens a promising chapter in the history of Infor. We can focus on the long-term development of our products, improving solutions with a deep industry specialization that help our customers quickly modernize the business and get tangible returns in a short time, noted Kevin Semuelson, CEO Infor

From the very first day of cooperation, it was clear to us that thanks to Infor's special approach to doing business and the team, the company makes a significant contribution to the growth of its market segment. We want to thank Golden Gate Capital for its productive collaboration and welcome 17,000 Infor employees to Koch Industries, reported by Jim Hannan, Executive Vice President and Chief Executive Officer of Koch Industries Corporate

We feel rightful pride at the fact that 18 years ago we created Infor and brought it to the leaders of the industry, said David Dominic, co-founder of Golden Gate Capital

We were pleased to be able to work with Infor management and Koch Industries. We want to wish the Infor team success in the further development of the company, stressed Golden Gate Capital Managing Director Rishi Chandna

The terms of the transaction were not disclosed. Goldman Sachs & Co acted as financial advisers on the deal from the Koch group of companies. LLC, Rothschild Inc. и Citigroup Global Market Inc. Legal support for the transaction was provided by Jones Day. The financial advisors on the part of the Golden Gate Capital fund were companies, Morgan Stanley BofA Securities and. Credit Suisse Legal advice was provided by Kirkland & Ellis LLP and Nob Hill Law Group P.C.

Koch Industries bought Infor

In early February 2020, Koch Industries Petrochemical Corporation announced the acquisition of Infor. The purchase price is not officially named. According to Bloomberg sources, under this deal, the ERP vendor was valued at $11 billion or $13 billion, taking into account preferred shares. The interlocutors TechCrunch confirm this amount.

Koch Industries previously owned 70% of Infor, and now the subsidiary of the industrial conglomerate - Koch Equity Development - has bought the remaining stake from the Golden Gate Capital investment fund. Based on Infor's estimate of $13 billion, Golden Gate could be acquired for $3.9 billion.

Koch Industries announces acquisition of Infor

As a result of this transaction, Infor will remain independent with the previous management team, but will be a subsidiary for Koch Industries.

Probably, given the specialization, joining forces with Koch, which concentrates its efforts on the production and construction segment, can give a positive impetus for the development of Infor.

According to statements by Infor management, the company was preparing to enter the exchange in 2020. The company does not exclude such an opportunity in the future and in a new format.

Koch's decision to acquire Infor is a strong confirmation of our product strategy and is aimed at creating innovative solutions for our customers, "says Infor CEO Kevin Samuleson. - Being the "daughter" of a company with revenue of more than $110 billion, which reinvests 90% of profit back into its business, we will be in a unique position to ensure the digital transformation of the markets of our presence. We are rapidly expanding our specialized solutions CloudSuite and offering customers experience and performance that far exceeds the standard results for enterprise software.

Dave Vellante, a senior analyst at Wikibon research agency Dave Vellante, says that under former CEO Charles Phillips, Infor had a "good story," but there was no investment that would allow the company to compete on equal terms with Oracle and SAP.

As a result, Golden Gate turned out the way the company wanted: to unite companies, take away a little shares from Oracle and SAP, shake the market with a diverse history, attract companies that are tired of the big two, and ultimately turn it around, the expert noted.

According to statements by Infor management, the company was preparing to enter the exchange in 2020

Previously, Kevin Samuelson called "Infor's fastest-growing production area." In 2019, the company's business in this segment more than doubled. Joining forces with the Koch conglomerate, which has a large manufacturing business and is itself a client of Infor, can give the ERP company an impetus in this sector, experts say.

According to Samuelson, although Infor allows an IPO, selling the company was "a more attractive option at the moment." Dave Wellante believes that it will take several years for the company to enter the exchange, since the company first needs to "clear the balance sheet and clean up the profit and loss statement."

If Koch allows some reasonable investment, improves the marketing performance of the company and can demonstrate some growth, then I admit that Infor will receive an estimate of the cost of $20-30 billion, the analyst said.

According to Bloomberg, citing IDC data, Infor's share in the corporate software market is about 6%, which is the third indicator after SAP and Oracle. Infor says the SaaS division will reach annual revenue of $800 million in revenue after an annual growth of more than 20%.^[1]

2019: Attracting $1.5 billion of investments before IPO

On January 16, 2019, Infor announced the raising of $1.5 billion from the holders of its shares - Koch Equity Development (the investment division of the American multisectoral giant Koch Industries) and the private equity fund Golden Gate Capital. The company also announced a possible exit to the exchange.

What shares in the producer of enterprise resource planning systems were received by investors is not specified. An estimate of the cost of Infor  based on the results of the funding round is also unknown.

Infor raises $1.5 billion investment before IPO

According to the Reuters news agency, for Koch Equity this is not the first investment in Infor - at the beginning of 2017, more than $2 billion was invested.^[2]

Infor's received funds will go to improve the company's balance sheet before the planned exit to the exchange. In particular, the software developer is going to spend $1.25 billion to pay off debts, the total amount of which is about $6 billion by the beginning of 2019.

If they are going to conduct an IPO, then they need to get rid of debts, "says Dave Vellante, chief analyst at the research company Wikibon.

Infor said the company is considering an IPO in 2019 or 2020. The timing of the listing will depend on the situation on the market, Infor explained.

The publication SiliconANGLE notes that in a sense Infor already works as a public company: it sells bonds in open markets and issues income reports.

We have an order, like a public company. We are carefully checked without valuable valuables. We have a brand. Every bank on Wall Street comes to us, "said Infor CEO Charles Phillips in an interview with theCUBE owned by SiliconANGLE.

Dave Wellante called Infor "the world's largest least famous software development company" and expressed the opinion that the IPO "will finally give the company's brand the opportunity to get on the Fortune 1000 list."

Infor also noted that thanks to a collaboration with KED and Golden Gate Capital, the company, led by Charles Phillips, has invested about $2.5 billion in its own developments over five years. As a result, during this period, more than 475 new products were brought to the market, 1870 software integrations were carried out and 20,700 new industry functions were implemented in the Infor CloudSuite family of solutions.

2016: SaaS Solution SaaS accounted for more than 40% of software licensing revenue

On July 4, 2016, Infor published a report on its work in fiscal year 2016. The company's revenues grew in all areas.

Infor's annual revenue from software licensing fees and from subscriptions to cloud services under alternative audit standards jumped almost 27%. The company entered into 126 transactions worth more than $1 million, as well as 15 transactions ranging from $5 million.

According to the head of Infor Charles Phillips, more than 40% of proceeds from license payments for ON were necessary on solution SaaS against 10% three years before.

Infor Year Results: Revenue Growth in All Areas

In the fiscal fourth quarter closed April 30, 2016, Infor's revenue rose 8.8% compared to the previous financial year. Excluding currency fluctuations, there was a 9.4% rise.

The company notes that revenues increased for all sources, including license payments for software and subscription to cloud services, product update and technical support services, as well as from consulting services.

2013: Infor 10x Release

An important event in 2013 was the release of the Infor 10x solution, which includes updating all the main industry solutions of the company, covering twelve verticals and business applications. These are Enterprise Resource Management (ERP), Asset Management (EAM ), Supply Chain Management (SCM), Product Lifecycle Management (PLM), and Customer Relationship Management (CRM) applications. All these products are complemented by new features based on modern technologies: mobile, social, analytical and "cloud." The above solutions have enhanced the functionality of the ION platform.

The systems presented on the Russian market by the Infor LN, Infor M3 13.1, Infor SyteLine 9.00 line can be deployed both locally and in the "cloud," including in the hybrid. These systems support the Infor 10x platform and its included technologies Infor Ming.le, Infor Motion, Infor ION and Infor Business Intelligence (BI).

The Infor affiliate line includes 26 companies.

In 2013, Infor introduced an initiative for customers - Upgrade X. The goal is to painlessly update local versions of products by deploying the latest version of the product on the Infor Business Cloud and transferring customer data there.

2011

Released Inform10

At the end of 2011, the direction of support and advice increased, more than 500 clients extended their support contracts. Among the new and existing customers who made substantial investments in Infor products and solutions in 2011 are companies such as Ferrari, BAE Systems Military Air and Information, Hitachi Automotive Systems Americas, Inc., Grief, и Liberty Mutual. In 2011, more than 500 software developers joined the Infor team, and the company announced its plans to invite another 75 technical specialists to work at its innovation center, which will be opened at its new headquarters in New York.

Infor introduced 69 new products, 1904 new features and 2001 expansion at the request of customers - this is more than 70 percent higher than last year.

The company introduced Inform10, a next-generation enterprise solution that offers customers increased usability and functionality designed to suit the characteristics of each individual industry. Inform10 Workspace offers users a single navigation environment and uniformity of work in various areas of work. Inform10 ION, Infor's lightweight cross-platform technology, integrates company solutions with third-party applications to improve business speed with improved data sharing capabilities. This year, Infor entered into a partnership agreement with Salesforce.com, a leader in enterprise cloud computing. This will enable you to offer customers new InForce applications that will provide new collaboration capabilities and stimulate the active growth of customer companies.

17 percent increase in product license sales

Infor reported a 17 percent increase in product license sales for the 12 months ended November 2011. The company also said that the natural growth in license sales for the second fiscal quarter, which ended in November 2011, was 16%. EBITDA margin increased to 27%, and the pace of expanding the range of customers of the company's solutions and product support significantly increased.

The growth of Infor's core business - ERP solutions - accelerated by 25% in the second fiscal quarter compared to the same period last fiscal year. Excellent financial results have brought a dynamic year of transformation, which is based on a large investment in the development of specific business applications for the main branches of the company's customers. The number of customers increased - more than 2,500 customers purchased Infor solutions, and more than 12,000 expanded their relationship with the company during 2011.

Relocation of headquarters to New York

In November 2011, Infor announced the relocation of its headquarters to New York. The company's new office has an innovation center where software developers and graphic designers will focus on developing an intuitive graphical user interface for the Inform10 solution and integrating social applications into the enterprise environment.

Purchase of Lawson Software for $2 billion

In March 2011, Infor affiliated acquired Lawson Software for $2 billion. 400 engineers will be transferred from Lowson to the new company, and all Lowson product lines will be integrated into the new owner's product portfolio. Infor hopes this deal will open her access to the SMB segment.

2010: Worldwide revenue - about $2 billion

Infor's annual revenue worldwide in fiscal year 2010 was about $2 billion.

2009

Buying SoftBrands

In August 2009, Infor acquired SoftBrands, a supplier of a management system for hotels and tourist complexes Edelweiss/Medallion. In this regard, Infor has the need to select a developer who can regularly maintain and update the system so that it meets all the requirements of a rapidly changing market. Infor has chosen Reksoft because it has considerable experience in developing solutions for tourism and has a long and successful experience with SoftBrands.

3rd place in the world after SAP and Oracle in the business software market

For 2009, Infor is the third largest enterprise software provider in the world after SAP and Oracle. By the number of customers, Infor, according to its leaders, ranks first in the world. The vendor's customer base is 70 thousand companies, while SAP products are used by 35 thousand companies, and Oracle products  - 11 thousand. Most of Infor's global turnover is accounted for by corporate solutions (ERP systems for enterprises with a discrete and continuous process of production, trade and distribution). In addition, the vendor develops CRM systems, systems for managing enterprise assets, supply chains, and business efficiency.

2002: Investment attraction from Golden Gate Capital

In 2002, Golden Gate Capital, a private equity fund, first invested in Infor.