Infor announces US$1.5 billion investment ahead of potential initial public offering

By Paul Rogers   13 February, 2019
Infor announces US$1.5 billion investment ahead of potential initial public offering

Infor has agreed to receive a US$1.5 billion investment from shareholders Koch Equity Development, LLC (KED) and Golden Gate Capital

Infor, a global leader in business cloud software specialised by industry, has announced an agreement to receive a US$1.5 billion investment from shareholders Koch Equity Development, LLC (KED) and Golden Gate Capital.

This investment builds on KED’s investment of more than US$2 billion in early 2017, and it represents an important milestone as Infor considers a potential IPO in 2019 or 2020, subject to market conditions.

“Koch and Golden Gate Capital have been phenomenal partners for Infor and all of our 17,300 employees are excited about this milestone as we prepare for the next stage of growth,” said Charles Phillips, CEO of Infor.

Under Phillips’ leadership, and over the course of Infor’s partnership with KED and Golden Gate Capital, Infor has invested around US$2.5 billion in product design and development over the last five years and delivered more than 475 new products, 1,870 integrations and 20,700 industry features in its CloudSuite product line.

“Koch was a customer of Infor before we became an investor in the company and Koch Industries’ companies continue to move their most mission critical applications to Infor CloudSuites,” added Jim Hannan, Koch Executive Vice President and CEO of Enterprises for Koch Industries, Inc.

“Infor’s innovative products have helped lead our Digital Transformation as we continue to deploy them globally for 120,000 employees.”

Meanwhile, David Dominik, Managing Director of Golden Gate Capital, said: “Infor has undergone a remarkable evolution over the years. We remain strong supporters of the company’s strategy and leadership team as they pursue their next phase of growth and continue to enhance the operations of businesses across a range of sizes and industries.”

With over US$3 billion of revenue in fiscal year 2018, Infor became the first company to move mission critical ERP application suites to public clouds for entire industries.

“Infor’s CloudSuites are the foundation for digital transformation for more than 9,500 customers in 110 countries,” said Jane Thomson, Managing Director of EOH Infor Services.

“Infor applications span financials, manufacturing, supply chain, human resources and customer relationships.

“Over the last five years, Infor has consistently gained market share in cloud applications, and 70% of its software license revenue is now derived from cloud applications.”

Fundamental to Infor’s strategy is its ability to engineer each CloudSuite for a specific industry. Infor eliminates the need for expensive customisations and runaway consulting engagement and customers routinely lower costs by 25% or more.

“Companies see the value in shifting their enterprise applications to the cloud but can’t make that transition until critical industry features are replicated there,” said Phillips.

“Infor built these previously bespoke features as standard cloud services and now has access to valuable data across business functions to build predictive analytics and insightful correlations on our Coleman AI platform.”

Infor CloudSuite is also future proofed for innovation.

“Infor applications run on public scale clouds and open source infrastructure not tied to a single data store and scale out at lower costs using commodity compute and storage on demand,” said Thomson.

“Vertical integration is a legacy of on-premise computing, and modern applications leverage global, commodity infrastructure.”


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